WASHINGTON — Fourth quarter GDP growth was revised down slightly to a 2.5% annual rate from the 2.6% pace in the advance estimate, as expected, data released Wednesday by the Bureau of Economic Analysis showed.
A downward revision to inventory growth was the key factor, supplemented by slower nonresidential fixed investment and government spending growth. Residential fixed investment growth was stronger, while the net export gap was modestly narrower. PCE growth was unrevised.
Overall, the data suggest little change in the overall growth picture, with the mix resulting a slight upward adjustment to final sales. Likewise, the price picture was virtually untouched from the advance estimate.
Inventory investment was revised down to an $8.0 billion gain for the quarter from $9.2 billion in the advance estimate. The net export gap now stands at $652.2 billion, only modestly than $652.6 billion gap in the advance estimate.
Within consumption, which is still reported up 3.8% for the quarter, there was a downward revisions to goods PCE, offset by an upward adjustment services PCE.
The personal savings rate was revised up modestly to 2.7% from 2.6% in the advance estimate, but was still down sharply from 3.4% in 3Q.
Nonresidential fixed investment was revised slightly lower to a 6.6% pace from the 6.8% gain in the advance estimate, with a downward adjustment to intellectual property more than offsetting upward revisions to structures and equipment.
Residential fixed investment was revised up to 13.0% rate of gain from the 11.6% gain in the advance estimate.
Government spending was revised down slightly to a 2.9% gain, compared with a 3.0% rise in the advance estimate.
As a result of the mix of revisions, real final sales of domestic product were revised up to a 3.3% gain from the 3.2% increase in the advance estimate. Real final sales to domestic purchasers was unrevised at a 4.3% pace.
The key price measures were generally unrevised in the second estimate for the quarter. The chain price index was revised down slightly to a 2.3% gain from the previously reported 2.4% rise, still up from the 2.1% gain in the second quarter.
The closely watched core PCE price index was unrevised at a 1.9% gain, keeping the year/year rate for the measure at 1.5%, still slightly ahead of the 1.4% rise in the third quarter.
