Tuesday, February 28, 2017

Q4 GDP Unrevised at 1.9% Annual Rate

by Bill McBride on 2/28/2017 08:34:00 AM

From the BEA: Gross Domestic Product: Fourth Quarter 2016 (Second Estimate)

Real gross domestic product (GDP) increased at an annual rate of 1.9 percent in the fourth quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.5 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was also 1.9 percent. With the second estimate for the fourth quarter, the general picture of economic growth remains the same; the increase in personal consumption expenditures was larger and increases in state and local government spending and in nonresidential fixed investment were smaller than previously estimated ...
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised up from 2.3% to 3.0%. (solid PCE). Residential investment was revised down from 10.2% to +9.6%. This was below the consensus forecast.