Real gross domestic product (GDP) increased at an annual rate of 1.9% in the Q4 of 2016, according to the ‘advance’ estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.5%.

The increase in real GDP in the Q4 reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by negative contributions from exports and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the Q4 reflected a downturn in exports, an acceleration in imports, a deceleration in PCE, and a downturn in federal government spending that were partly offset by an upturn in residential fixed investment, an acceleration in private inventory investment, an upturn in state and local government spending, and an acceleration in nonresidential fixed investment.

Current-dollar GDP increased 4.0%, or $185.5bn, in the Q4 to a level of $18,860.8bn. In the Q3, current dollar GDP increased 5.0%, or $225.2bn.

The price index for gross domestic purchases increased 2.0% in the Q4, compared with an increase of 1.5% in the Q3. The PCE price index increased 2.2%, compared with an increase of 1.5%. Excluding food and energy prices, the PCE price index increased 1.3%, compared with an increase of 1.7%.

Personal income

Current-dollar personal income increased $152.0bn in the Q4, compared with an increase of $172.3bn in the Q3. The deceleration in personal income primarily reflected a deceleration in wages and salaries.

Disposable personal income increased $130.2bn, or 3.7%, in the Q4, compared with an increase of $141.5bn, or 4.1%, in the Q3. Real disposable personal income increased 1.5%, compared with an increase of 2.6%.

Personal saving was $791.2bn in the Q4, compared with $818.1bn in the Q3. The personal saving rate was 5.6% in the Q4, compared with 5.8% in the Q3.

2016 GDP

Real GDP increased 1.6% in 2016, compared with an increase of 2.6% in 2015.

The increase in real GDP in 2016 reflected positive contributions from PCE, residential fixed investment, state and local government spending, exports, and federal government spending that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP from 2015 to 2016 reflected a downturn in private inventory investment, a deceleration in PCE, a downturn in nonresidential fixed investment, and decelerations in residential fixed investment and in state and local government spending that were offset by a deceleration in imports and accelerations in federal government spending and in exports.

Current-dollar GDP increased 2.9%, or $530.3bn, in 2016 to a level of $18,566.9bn, compared with an increase of 3.7%, or $643.5bn, in 2015.

The price index for gross domestic purchases increased 1.0% in 2016, compared with an increase of 0.4% in 2015.

During 2016, real GDP increased 1.9%, the same rate as during 2015. The price index for gross domestic purchases increased 1.5% during 2016, compared with an increase of 0.4% during 2015.