Menu

U.S. GDP Grew at 3.2 Percent in Q4 2013

Real personal consumption expenditures increased 3.3 percent in Q4; residential fixed investment dropped 9.8 percent.


Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.2 percent in the fourth quarter of 2013 (that is, from the third quarter to the fourth quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.1 percent.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and state and local government spending that were partly offset by negative contributions from federal government spending and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the fourth quarter reflected a deceleration in private inventory investment, a larger decrease in federal government spending, a downturn in residential fixed investment, and decelerations in state and local government spending and in nonresidential fixed investment that were partly offset by accelerations in exports and in PCE and a deceleration in imports.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.2 percent in the fourth quarter, compared with an increase of 1.8 percent in the third. Excluding food and energy prices, the price index for gross domestic purchases increased 1.7 percent in the fourth quarter, compared with an increase of 1.5 percent in the third.

Real personal consumption expenditures increased 3.3 percent in the fourth quarter, compared with an increase of 2.0 percent in the third. Durable goods increased 5.9 percent, compared with an increase of 7.9 percent. Nondurable goods increased 4.4 percent, compared with an increase of 2.9 percent. Services increased 2.5 percent, compared with an increase of 0.7 percent.

Real nonresidential fixed investment increased 3.8 percent in the fourth quarter, compared with an increase of 4.8 percent in the third. Nonresidential structures decreased 1.2 percent, in contrast to an increase of 13.4 percent. Equipment increased 6.9 percent, compared with an increase of 0.2 percent. Intellectual property products increased 3.2 percent, compared with an increase of 5.8 percent. Real residential fixed investment decreased 9.8 percent, in contrast to an increase of 10.3 percent.

Real exports of goods and services increased 11.4 percent in the fourth quarter, compared with an increase of 3.9 percent in the third. Real imports of goods and services increased 0.9 percent, compared with an increase of 2.4 percent.

Real federal government consumption expenditures and gross investment decreased 12.6 percent in the fourth quarter, compared with a decrease of 1.5 percent in the third. National defense decreased 14.0 percent, compared with a decrease of 0.5 percent. Nondefense decreased 10.3 percent, compared with a decrease of 3.1 percent. Real state and local government consumption expenditures and gross investment increased 0.5 percent, compared with an increase of 1.7 percent.

The change in real private inventories added 0.42 percentage point to the fourth-quarter change in real GDP after adding 1.67 percentage points to the third-quarter change. Private businesses increased inventories $127.2 billion in the fourth quarter, following increases of $115.7 billion in the third quarter and $56.6 billion in the second.

Real final sales of domestic product -- GDP less change in private inventories -- increased 2.8 percent in the fourth quarter, compared with an increase of 2.5 percent in the third.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 1.8 percent in the fourth quarter, compared with an increase of 3.9 percent in the third.

Disposition of personal income

Current-dollar personal income increased $69.4 billion (2.0 percent) in the fourth quarter, compared with an increase of $140.0 billion (4.0 percent) in the third. The deceleration in personal income primarily reflected downturns in personal dividend income and in farm proprietors’ income and a deceleration in personal current transfer receipts that were partly offset by an acceleration in wages and salaries.

Personal current taxes increased $23.7 billion in the fourth quarter, in contrast to a decrease of $11.0 billion in the third.

Disposable personal income increased $45.7 billion (1.5 percent) in the fourth quarter, compared with an increase of $151.0 billion (5.0 percent) in the third. Real disposable personal income increased 0.8 percent in the fourth quarter, compared with an increase of 3.0 percent in the third.

Personal outlays increased $118.6 billion (4.0 percent) in the fourth quarter, compared with an increase of $113.4 billion (3.9 percent) in the third. Personal saving -- disposable personal income less personal outlays -- was $545.1 billion in the fourth quarter, compared with $618.0 billion in the third.

The personal saving rate -- personal saving as a percentage of disposable personal income -- was 4.3 percent in the fourth quarter, compared with 4.9 percent in the third. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s financial accounts of the United States and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp.

Current-dollar GDP

Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 4.6 percent, or $189.6 billion, in the fourth quarter to a level of $17,102.5 billion. In the third quarter, current-dollar GDP increased 6.2 percent, or $251.9 billion.

2013 GDP

Real GDP increased 1.9 percent in 2013 (that is, from the 2012 annual level to the 2013 annual level), compared with an increase of 2.8 percent in 2012.

The increase in real GDP in 2013 primarily reflected positive contributions from personal consumption expenditures (PCE), exports, residential fixed investment, nonresidential fixed investment, and private inventory investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.

SPONSORED ADS