Thursday, February 25, 2021

Q4 GDP Growth Revised up slightly to 4.1% Annual Rate

by Calculated Risk on 2/25/2021 08:43:00 AM

From the BEA: Gross Domestic Product, Fourth Quarter and Year 2020 (Second Estimate)

Real gross domestic product (GDP) increased at an annual rate of 4.1 percent in the fourth quarter of 2020, according to the "second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 33.4 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 4.0 percent. With the second estimate, upward revisions to residential fixed investment, private inventory investment, and state and local government spending were partly offset by a downward revision to personal consumption expenditures (PCE)
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised down to 2.4% from 2.5%. Residential investment was revised up from 33.5% to 35.8%. This was at the consensus forecast.