US GDP Growth for Q4 Revised Down to 2.4 Percent as Key Inflation Measures Continue Below Target

Revised data released today by the Bureau of Labor Statistics showed that U.S. real GDP grew at an annual rate of 2.4 percent in the fourth quarter of 2014, somewhat slower than the 3.2 percent previously reported. Allowing for population growth of about 0.7 percent, the annualized growth rate of real GDP per capita was 1.7 percent. The report also showed that key inflation measures derived from the national income accounts slowed in the quarter.

As the following table shows, the downward revisions affected nearly all sectors of the economy. The one bright spot was the contribution to GDP growth from private investment, which increased from a previously estimated .58 percentage points to .72 percentage points. Furthermore, more of the growth came from fixed investment and less from inventory buildup than previously reported. The contributions from consumption and net exports were both less than previously reported.>>>Read more