Real gross domestic product increased at an annual rate of 2.5 percent in the fourth quarter of 2006, according to final estimates by the Bureau of Economic Analysis. Earlier BEA estimates put fourth quarter growth at 2.2 percent.

Third quarter real GDP increased 2 percent.
Personal consumption expenditures rose 4.2 percent in fourth quarter, compared with 2.8 percent in third quarter. Real nonresidential fixed investments decreased 3.1 percent, following a 10 percent increase the previous quarter. Residential fixed investment fell 19.8 percent, following an 18.7 percent decrease in third quarter.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $4.9 billion in the fourth quarter, compared to a $61.5 billion increase in third quarter. Current-production cash flow (internal funds available to corporations for investments) decreased $1.1 billion versus a $30 billion increase in the previous quarter.
For the full year, profits from current production increased 21.4 percent, compared to a 12.5 percent increase in 2005. Domestic profits increased 21.1 percent, versus 12.7 percent. The "rest-of-the-world" component of corporate profits increased 23.4 percent, versus 11.7 percent.