WASHINGTON – Gross domestic product increased at a 5.6% annual rate in the fourth quarter of 2009, revised down from 5.9% previous estimate, as business investments and private inventories were revised lower, the Commerce Department reported today.
Consumer spending slipped to 1.6% annual growth in the fourth quarter from 1.7% previously reported.
Overall, fourth quarter growth was tempered by downward revisions to nonresidential fixed investment based on November and December construction spending data.
Also, new data from wholesale trade and inventories in the last two months of 2009 pulled down private inventory investment.
Economists polled by Thomson Reuters expected GDP to be unchanged at 5.9% growth in this final revision, according to the median estimate.
The revised 5.6% growth was still the largest since the third quarter of 2003. For all of 2009, GDP decreased 2.4%, unchanged from last month’s report. It is the largest annual GDP decline since a 10.6% drop in 1946.
GDP rose 2.2% in the third quarter and fell 0.7% and 6.4% in the two preceding quarters.
Personal consumption expenditures excluding food and energy purchases, increased 1.8% annually in the fourth quarter. Economists had expected core PCE to increase 1.6%, according to the median estimate.
Exports of goods and services increased 22.8% annually in the fourth quarter, revised higher from 22.4%. Imports rose 15.1%. The trade deficit grew to $449.5 billion in the fourth quarter from $402.2 billion in the third quarter.
Government spending declined 1.3% annually in the fourth quarter. Federal spending was flat while state and local spending dropped 2.2%.
Advance GDP estimates for the first quarter of 2010 will be published on April 30.
