The US economy expanded an annualized 1.4 percent on quarter in the last three months of 2015, higher than a second estimate of 1 percent, according to final figures released by the Bureau of Economic Analysis. Consumer spending increased more than anticipated and the negative impact from trade came lower than expected while the drag from business inventories was larger.
Personal consumption expenditure (PCE) contributed 1.66 percentage points to growth (1.38 percent in the second estimate) and rose 2.4 percent (2 percent in the second estimate). Spending on both durable goods (3.8 percent from 3.4 percent in the second estimate) ans services (2.8 percent from 2.1 percent in the second estimate) grew more while nondurable goods (0.6 percent from 1.2 percent in the second estimate) increased less than anticipated.
Fixed investment added 0.06 percentage points to growth (0.02 percent in the second estimate) and expanded at a faster 0.4 percent (0.1 percent in the second estimate). Nonresidential investment shrank 2.1 percent (-1.9 percent in the second estimate): structures fell less (-5.1 percent from -6.6 percent in the second estimate) while equipment investment decreased more than anticipated (-2.1 percent from -1.8 percent in the second estimate). Residential investment jumped 10.1 percent, higher than 8 percent in the second estimate.
Private inventories subtracted 0.22 percentage points from the growth, compared to a 0.14 percentage points decrease earlier estimated. Businesses accumulated $78.3 billion worth of inventory, lower than $81.7 billion earlier reported.
Meanwhile, exports shrank at a slower 2 percent (-2.7 percent in the second estimate) while imports contracted 0.7 percent, compared to a 0.6 percent decrease earlier reported and bringing the impact from trade to -0.14 percent from -0.25 percentage points earlier reported.
Government spending and investment added 0.02 percentage points to growth compared to a 0.01 percentage points decrease reported earlier, up 0.1 percent from the third quarter.
Considering full 2015, the economy expanded 2.4 percent.
3/25/2016 1:00:06 PM