Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 5.7% in the fourth quarter of 2009, (that is, from the third quarter to the fourth quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.2%.
Real GDP decreased 2.4% in 2009 (that is, from the 2008 annual level to the 2009 annual level), in contrast to an increase of 0.4% in 2008. The price index for gross domestic purchases increased 0.1% in 2009, compared with an increase of 3.2% in 2008.
The Bureau emphasized that the fourth-quarter advance estimate released today is based on source data that are incomplete or subject to further revision. The “second” estimate for the fourth quarter, based on more complete data, will be released on
February 26, 2010.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from private inventory investment, exports, and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increased.
The change in real private inventories added 3.39 percentage points to the fourth-quarter change in real GDP after adding 0.69 percentage point to the third-quarter change. Private businesses decreased inventories $33.5 billion in the fourth quarter, following decreases of $139.2 billion in the third quarter and $160.2 billion in the second. Real final sales of domestic product — GDP less change in private inventories — increased 2.2% in the fourth quarter, compared with an increase of 1.5% in the third.
Real gross domestic purchases — purchases by U.S. residents of goods and services wherever produced — increased 5.1% in the fourth quarter, compared with an increase of 3.0% in the third.
Current-dollar personal income increased $119.2 billion (4.0%) in the fourth quarter,
compared with an increase of $35.1 billion (1.2%) in the third. Disposable personal income increased $130.8 billion (4.8%) in the fourth quarter, compared with an increase of $31.6 billion (1.2%) in the third. Real disposable personal income
increased 2.1%, in contrast to a decrease of 1.4%.
Personal saving — disposable personal income less personal outlays — was $516.9 billion in the fourth quarter, compared with $495.0 billion in the third. The personal saving rate — saving as a percentage of disposable personal income — was 4.6% in
the fourth quarter, compared with 4.5% in the third.
Current-dollar GDP — the market value of the nation’s output of goods and services — increased 6.4%, or $221.3 billion, in the fourth quarter to a level of $14,463.4 billion. In the third quarter, current-dollar GDP increased 2.6%, or $90.9 billion.