Fourth Quarter 2013 GDP Revised Downward to 2.4%
Posted on February 28, 2014
The U.S. government has revised the GDP for Q4 2013 to 2.4%. This is a big decrease from the original 3.2% the government reported last month. It is also a big drop from the Q3 GDP. In the third quarter, real GDP increased 4.1 percent.The official report from the Bureau of Economic Analysis (BEA) can be found here (PDF). The BEA says, "With this second estimate for the fourth quarter, an increase in personal consumption expenditures (PCE) was smaller than previously estimated."
The BEA attributes the deceleration in real GDP growth to reduced private inventory investment and a larger decrease in spending by the federal government.
Stocks are up following the news today. Forbes reports that analysts were expecting the downward revision.