The U.S. economy grew more slowly than first reported in the last three months of 2018, according to the "third" estimate released by the Bureau of Economic Analysis.
Real gross domestic product (GDP) increased at an annual rate of 2.2 percent in the fourth quarter of 2018, the Bureau now reports.
That’s down dramatically from the third quarter of 2018, when real GDP increased 3.4 percent.
This latest GDP estimate is based on more complete source data than were available for the "initial" estimate issued last month. In the initial estimate, the increase in real GDP was 2.6 percent.
The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, private inventory investment, and federal government spending.
Those were partly offset by negative contributions from residential fixed investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP growth in the fourth quarter reflected decelerations in private inventory investment, PCE, 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 nonresidential fixed investment. Imports increased less in the fourth quarter than in the third quarter.