2019.03.2809:24:00UTC+00U.S. Q4 GDP Growth Downwardly Revised More Than Expected

In a report likely to exacerbate concerns about slowing economic growth, the Commerce Department revealed Thursday the increase in U.S. gross domestic product in the fourth quarter was downwardly revised by more than anticipated.

The Commerce Department said GDP climbed by 2.2 percent in the fourth quarter compared to the previously reported 2.6 percent increase. Economists had expected the pace of growth to be downwardly revised to 2.4 percent.

With the downward revision, the pace of GDP growth in the fourth quarter is notably slower than the 3.4 percent jump in the third quarter.

The slower than previously estimated fourth quarter GDP growth was partly due to a downward revision to consumer spending, which climbed by 2.5 percent compared to the previously reported 2.8 percent increase.

The report also showed downward revisions to state and local government spending and non-residential fixed investment, which were partly offset by a downward revision to imports.

The Commerce Department also said the slower GDP growth compared to the previous quarter reflected decelerations in private inventory investment, consumer spending, and federal government spending and a downturn in state and local government spending.

These movements were partly offset by an upturn in exports and an acceleration in non-residential fixed investment.

Imports, which are a subtraction in the calculation of GDP, also increased less in the fourth quarter than in the third quarter.

The report said real GDP jumped 2.9 percent in full-year 2018 compared with an increase of 2.2 percent in 2017.