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27 Mar 2015
US fourth quarter GDP rose at an annualized rate of 2.2%
FXStreet (Mumbai) - The data released by the US commerce department today showed the Real gross domestic product adjusted for price changes, increased at an annual rate of 2.2% in the fourth quarter of 2014, missing the estimate of 2.4%. In the third quarter, real GDP increased 5.0%.
The increased in the real GDP was due to the positive contributions from PCE, nonresidential fixed investment, exports, state and local government spending, and residential fixed investment, while the upturn in imports, a downturn in federal government spending, a deceleration in nonresidential fixed investment, and a larger decrease in private inventory investment dragged the GDP lower. The GDP price index, which measures the prices paid by the US resident, fell 0.1% in Q4 matching the second estimate. The index stood at +1.4% in Q3.
Real personal consumption expenditures increased 4.4% in the fourth quarter, compared with an increase of 3.2% in the third. Core personal consumption expenditure in Q4 matched the estimate of 1.1%, compared to the previous quarter’s figure of 1.4%.
The increased in the real GDP was due to the positive contributions from PCE, nonresidential fixed investment, exports, state and local government spending, and residential fixed investment, while the upturn in imports, a downturn in federal government spending, a deceleration in nonresidential fixed investment, and a larger decrease in private inventory investment dragged the GDP lower. The GDP price index, which measures the prices paid by the US resident, fell 0.1% in Q4 matching the second estimate. The index stood at +1.4% in Q3.
Real personal consumption expenditures increased 4.4% in the fourth quarter, compared with an increase of 3.2% in the third. Core personal consumption expenditure in Q4 matched the estimate of 1.1%, compared to the previous quarter’s figure of 1.4%.