United States: Q4 growth revised upwards
March 25, 2011
In the fourth quarter, GDP increased 3.1% over the previous quarter at a seasonally adjusted annualised rate, according to the 25 March estimate released by the Bureau of Economic Analysis (BEA). The figure was up from the 2.8% expansion reported one month earlier, but came in a notch below the first estimate of a 3.2% expansion. That said, the economy gained momentum in the final quarter of the year, accelerating from the 2.6% growth rate recorded in Q3. The upward revision was due to faster growth in investment, while the contribution from net exports was slightly lower. Personal consumption expenditures were revised to a 4.0% expansion (initially reported: +4.1% qoq saar). In contrast, fixed investment was stronger than previously estimated, expanding 6.8% (initially reported: +4.8% qoq saar), as both residential and non-residential components grew at a faster clip than previously reported. Exports of goods and services expanded at a pace of 8.6% (previously reported: +9.6% qoq saar) while imports contracted 12.6% (previously reported: -12.4% qoq saar). As a result, the net contribution from the external sector to overall growth slipped a notch to 3.27 percentage points (initially reported: +3.44 percentage points).