Friday, March 27, 2015

Q4 GDP unrevised at 2.2% Annual Rate

by Bill McBride on 3/27/2015 08:31:00 AM

From the BEA: Gross Domestic Product: Fourth Quarter 2014 (Third Estimate)

Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- increased at an annual rate of 2.2 percent in the fourth quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 5.0 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was also 2.2 percent. While increases in exports and in personal consumption expenditures (PCE) were larger than previously estimated and the change in private inventories was smaller, GDP growth is unrevised, and the general picture of the economy for the fourth quarter remains the same
Here is a Comparison of Third and Secord Estimates.  PCE was revised up from 4.2% to 4.4% - solid. Private investment was revised down from 5.1% to 3.7%. This was below expectations of a revision to 2.4%.