Fourth Quarter GDP Growth Climbs to 3.2 Percent
January 28, 2011
(ChattahBox Business News)–Our economy continues to move forward, although not quite fast enough as yet, to make a significant dent in the high unemployment rate. The U.S. Commerce Department released its Gross Domestic Product report for the fourth quarter, and it’s good news. The GDP rose to 3.2 percent, from just 2.6 percent in the third quarter. Today’s report marks the sixth straight quarter of growth for real GDP. And the final robust sales numbers are particularly encouraging, with an increase of 7.1 percent.
The report from the Bureau of Economic Analysis shows a positive trend in most areas of GDP analysis, including real personal consumption expenditures, exports of goods and services and final sales of domestic product.
“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 3.2 percent in the fourth quarter of 2010, (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 2.6 percent.” [...]
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
And about those sales figures:
“Real final sales of domestic product — GDP less change in private inventories — increased 7.1 percent in the fourth quarter, compared with an increase of 0.9 percent in the third.”
Now, if the GDP could just edge closer to four percent, the unemployment numbers would begin a slow steady climb downward.