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 0.6 percent in the fourth quarter of 2007, according to advance
estimates released today by the Bureau of Economic Analysis.
In the third quarter, real GDP increased 4.9 percent. The bureau emphasized that the fourth-quarter "advance" estimates are based on source data that are incomplete or subject to further revision by the source agency.
The fourth quarter "preliminary" estimates, based on more comprehensive data, will be released on Feb. 28. The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential structures, state and local government spending, exports, and equipment and software that were largely offset by negative contributions from private inventory investment and residential fixed investment.
Imports, which are a subtraction in the calculation of GDP, increased slightly. The deceleration in real GDP growth in the fourth quarter primarily reflected a downturn in inventory investment and decelerations in exports, in PCE, and in federal government spending that were partly offset by a deceleration in imports and an acceleration in state and local government spending.