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- U.S. economy expands slightly more than initially estimated in Q4
U.S. economy expands slightly more than initially estimated in Q4
A report from
the Commerce Department showed on Thursday that the U.S. economy expanded slightly
more than initially estimated in the fourth quarter of 2020, reflecting the upward
revisions to residential fixed investment, private inventory investment, and
state and local government spending, which were partly offset by a downward
revision to personal consumption expenditures (PCE).
According to
the second estimate, the U.S. gross domestic product (GDP) grew at a 4.1
percent annual rate in the fourth quarter, slightly faster than a 4.0 percent advance
reported in the advance estimate.
Economists had
expected the decline rate to be revised to 4.2 percent, following the third
quarter's surge of 33.4 percent.
The increase in
real GDP in the fourth quarter reflected gains in exports, nonresidential fixed
investment, PCE, residential fixed investment, and private inventory investment
that were partly offset by declines in state and local government spending and
federal government spending. Meanwhile, imports, which are a subtraction in the
calculation of GDP, rose.
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