United States: Q4 growth revised downwards
February 25, 2011
The economy grew slower than initially estimated in the final quarter of 2010. In the fourth quarter, GDP increased 2.8% over the previous quarter at a seasonally adjusted annualised rate, according to the 25 February estimate released by the Bureau of Economic Analysis (BEA). The figure was down from the 3.2% expansion previously reported but still represents an acceleration compared to the 2.6% growth recorded in Q3. The downward revision reflected slower growth in domestic demand, while the contribution from net exports remained broadly unchanged. Personal consumption expenditures were revised to a 4.1% expansion (initially reported: +4.4% qoq saar). In contrast, fixed investment was stronger than previously estimated, expanding 4.8% (initially reported: +4.2% qoq saar), amid faster growth in non-residential investment. Residential investment, however, expanded at a slower clip than previously reported. In the external sector, exports expanded at a pace of 9.6% (previously reported: +8.5% qoq saar) while imports contracted 12.4% (previously reported: -13.6% qoq saar). As a result, the net contribution from the external sector to overall growth was lowered a notch to 3.44 percentage points (initially reported: +3.55 percentage points).