The US GDP in the fourth quarter of 2016 increased by 1.9% in annual terms, according to revised data. The result coincided with preliminary data.
At the same time, the experts expected the revision in the direction of improvement - to an average 2.2%, according to MarketWatch.
The rise of the economy on the basis of the whole 2016 has been downgraded to 1.6% from the previously reported 1.9%. Thus, for the eleventh consecutive year, the rate of increase of the US economy cannot reach the 3% level. Yet, the average historical level of the GDP growth is 3.3%.
The most significant negative impact on the dynamics of GDP in the fourth quarter came from the foreign trade, which reduced the index by 1.7 percentage points (the highest since the second quarter of 2010), which coincided with the preliminary data. The US exports fell 4% (previously reported fall was 4.3%), while imports rose 8.5% (the first estimate was 8.3%).
Consumer spending, which accounts for 70% of the US GDP, in the October-December quarter rose 3% y/y against the previously announced level at 2.5%.
The growth of PCE Core (Personal Consumption Expenditures, Excluding Food & Energy), which is closely monitored by the Federal Reserve System in the assessment of inflation risks, in the last quarter amounted to 1.2%, and not 1.3%.
Meanwhile, the investment in core assets increased by only 3.2% (previously estimated increase was 4.2%), including equipment - 1.9% (3.1%).
The volume of products in storage reserves grew by $ 46.2 billion compared to the previously announced $ 48.7 billion.
The presented information by the Department of Commerce on Friday is the second out of three planned changes in the assessment of the US GDP for the fourth quarter. The final data on the dynamics of the US economy will be published on March 30.