Consumer spending picked up late last year more
than previously estimated real gross domestic product (GDP) increased an
annualised 2.6% in the fourth quarter of 2013, according to the “third”
estimate released by the Bureau of Economic Analysis. The growth rate was 0.2
percentage point more than the “second” estimate released in February. In
the third quarter, the growth rate was 4.1%.
Fourth-quarter GDP highlights: Consumer spending rose 3.3%,
the highest since the fourth quarter of 2010, reflecting spending on housing and
utilities, health care, and food services and accommodations. In the third
quarter, consumer spending rose 2.0%.
Exports also accelerated in the fourth quarter. These
accelerations were more than offset, however, by a downturn in inventory
investment, a larger decrease in federal government spending, and a downturn in
GDP revisions: The upward revision to real GDP growth
reflected the incorporation of newly available source data. Consumer spending
was revised up (mainly services), while business investment (mainly intellectual
property products) and inventory investment were revised down.
Personal income and personal saving: Real disposable
personal income (DPI)—personal income adjusted for inflation and taxes—increased
0.8% in the fourth quarter, compared with 3.0% in the third quarter. Personal
saving as a% of DPI was 4.3% in the fourth quarter, compared with 4.9% in the
Fourth-quarter corporate profits: Profits grew 2.2% at a
quarterly rate, compared with 1.9% in the third quarter.
Profits of nonfinancial corporations rose 1.5%, profits of
financial corporations rose 1.3%, and profits from the rest of the world rose
Annual corporate profits: In 2013, corporate profits rose
4.6% at an annual rate, compared with 7.0% in 2012.
Profits of nonfinancial corporations rose 5.2%, profits of
financial corporations rose 8.2%, and profits from the rest of the world fell
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