Real gross domestic product (GDP) grew at an annual rate of 1.6 percent in the fourth quarter of 2005, according to preliminary estimate. This follows a growth rate of 4.1 percent in the third quarter.
Real gross domestic product (including shoes and clothing)-the output of goods and services produced by labor and property located in the United States-increased at an annual rate of 1.6 percent in the fourth quarter of 2005, according to preliminary estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.1 percent.
The GDP estimates released are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 1.1 percent.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from private inventory investment, personal consumption expenditures (PCE), exports, equipment and software, and residential fixed investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP growth in the fourth quarter primarily reflected a deceleration in PCE, an acceleration in imports, a downturn in federal government spending, and decelerations in equipment and software and in residential fixed investment that were partly offset by an upturn in inventory investment.