Gross domestic product grew at a 7% annualized rate last year, slightly above the previously reported rate of 6.9%.
- The economy expanded at a 2.3% growth rate in the third quarter. Meanwhile, the economic momentum seems to have waned by December amid a strong headwind from Covid-19 infections.
- The stronger than initially estimated GDP growth in Q4 primarily signaled upward revisions to non-residential fixed investment, state and local government spending, and residential fixed investment.
- The upward revisions were partly offset by downward revisions to consumer spending and exports.
- The sharp increase in GDP in the fourth quarter was partly due to a significant increase in business inventories, which added 4.9 percentage points.
The GDP growth also reflected an increase in exports and non-residential fixed investment that was partly offset by declines in government spending and an increase in imports.
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Source: Bureau of Economic Analysis.
