U.S. GDP growth for the last quarter of 2017 was revised down to 2.5% from the previously projected 2.6% figure, primarily reflecting a downward revision to private consumption expenditures, a second estimate by the Bureau of Economic Analysis showed.
The effect of a downturn in private inventory investment was partially offset by accelerations in personal consumption expenditures, or PCE, exports, nonresidential fixed investment, and government spending, and an upturn in residential fixed investment. Meanwhile, imports climbed during the quarter.
The PCE price index increased by a downwardly revised 2.7%, compared to a 1.5% rise in the previous quarter. Excluding food and energy prices, the index jumped 1.9%, compared to a 1.3% increase in the third quarter of 2017.
The latest GDP estimate was down from a 3.2% growth in the third quarter of 2017.
For full year 2017, real GDP rose by 2.3%, higher than a 1.5% increase in 2016, in line with the prior estimate, reflecting positive contributions from PCE, nonresidential fixed investment, and exports. Imports accelerated in 2017.
The acceleration from 2016 GDP growth reflects upturns in nonresidential fixed investment and in exports and a smaller decrease in private inventory investment in 2017. These effects were partly offset by decelerations in residential fixed investment and in state and local government spending. Imports also rose.
