Home > News Release: Gross Domestic Product (GDP)
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BEA 10-05


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Lisa Mataloni: (202) 606-5304 (GDP)
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Gross Domestic Product: Fourth Quarter 2009 (Second Estimate)
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 5.9 percent in the fourth quarter of 2009
(that is, from the third quarter to the fourth quarter) according to the "second" estimate released by the
Bureau of Economic Analysis.  In the third quarter, real GDP increased 2.2 percent.

	The GDP estimates released today are based on more complete source data than were available
for the "advance" estimate issued last month.  In the advance estimate, the increase in real GDP was 5.7
percent (see "Revisions" on page 3).

	The increase in real GDP in the fourth quarter primarily reflected positive contributions from
private inventory investment, exports, personal consumption expenditures (PCE), and nonresidential
fixed investment.  Imports, which are a subtraction in the calculation of GDP, increased.

	The acceleration in real GDP in the fourth quarter primarily reflected an acceleration in private
inventory investment, an upturn in nonresidential fixed investment, a deceleration in imports, and an
acceleration in exports that were partly offset by decelerations in PCE and in federal government
spending.

	Motor vehicle output added 0.44 percentage point to the fourth-quarter change in real GDP after
adding 1.45 percentage points to the third-quarter change.  Final sales of computers subtracted 0.01
percentage point from the fourth-quarter change in real GDP after subtracting 0.08 percentage point
from the third-quarter change.

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FOOTNOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified.  Quarter-to-quarter dollar changes are differences between these published estimates.
Percent changes are calculated from unrounded data and are annualized.  “Real” estimates are in chained
(2005) dollars.  Price indexes are chain-type measures.

            This news release is available on  BEA’s Web site along with the Technical Note and Highlights
related to this release.
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	The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.9 percent in the fourth quarter, 0.2 percentage point less than in the advance estimate; this
index increased 1.3 percent in the third quarter.  Excluding food and energy prices, the price index for
gross domestic purchases increased 1.3 percent in the fourth quarter, compared with an increase of 0.3
percent in the third.

	Real personal consumption expenditures increased 1.7 percent in the fourth quarter, compared
with an increase of 2.8 percent in the third.  Real nonresidential fixed investment increased 6.5 percent,
in contrast to a decrease of 5.9 percent.  Nonresidential structures decreased 13.9 percent, compared
with a decrease of 18.4 percent.  Equipment and software increased 18.2 percent, compared with an
increase of 1.5 percent.  Real residential fixed investment increased 5.0 percent, compared with an
increase of 18.9 percent.

	Real exports of goods and services increased 22.4 percent in the fourth quarter, compared with
an increase of 17.8 percent in the third.  Real imports of goods and services increased 15.3 percent,
compared with an increase of 21.3 percent.

	Real federal government consumption expenditures and gross investment increased 0.1 percent
in the fourth quarter, compared with an increase of 8.0 percent in the third.  National defense decreased
3.5 percent, in contrast to an increase of 8.4 percent.  Nondefense increased 8.3 percent, compared with
an increase of 7.0 percent.  Real state and local government consumption expenditures and gross
investment decreased 2.0 percent, compared with a decrease of 0.6 percent.

	The change in real private inventories added 3.88 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 $16.9 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 1.9
percent in the fourth quarter, compared with an increase of 1.5 percent in the third.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 5.5 percent in the fourth quarter, compared with an increase of 3.0 percent in the
third.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
6.3 percent, or $219.6 billion, in the fourth quarter to a level of $14,461.7 billion.  In the third quarter,
current-dollar GDP increased 2.6 percent, or $90.9 billion.
Revisions

	The second estimate of the fourth-quarter increase in real GDP is 0.2 percentage point, or $6.1
billion, higher than the advance estimate issued last month, primarily reflected upward revisions to
private inventory investment, to exports, and to nonresidential fixed investment that were partly offset
by an upward revision to imports and downward revisions to PCE and to state and local government
spending.

                                                             Advance            Second
							(Percent change from preceding quarter)
Real GDP.........................................              5.7                5.9
Current-dollar GDP...............................              6.4                6.3
Gross domestic purchases price index.............              2.1                1.9


2009 GDP

      Real GDP decreased 2.4 percent in 2009 (that is, from the 2008 annual level to the 2009 annual
level), in contrast to an increase of 0.4 percent in 2008.

      The decrease in real GDP in 2009 primarily reflected negative contributions from nonresidential
fixed investment, exports, private inventory investment, residential fixed investment, and personal
consumption expenditures (PCE), that were partly offset by a positive contribution from federal
government spending.  Imports, which are a subtraction in the calculation of GDP, decreased.

      The downturn in real GDP primarily reflected downturns in nonresidential fixed investment and
in exports and a larger decrease in private inventory investment that were partly offset by a larger
decrease in imports and a smaller decrease in residential fixed investment.

      The price index for gross domestic purchases was unchanged in 2009, compared with an increase
of 3.2 percent in 2008.

      Current-dollar GDP decreased 1.3 percent, or $183.2 billion, in 2009.  Current-dollar GDP
increased 2.6 percent, or $363.8 billion, in 2008.

      During 2009 (that is, measured from the fourth quarter of 2008 to the fourth quarter 2009), real
GDP increased 0.1 percent.  Real GDP decreased 1.9 percent during 2008.  The price index for gross
domestic purchases increased 0.6 percent during 2009, compared with an increase of 1.9 percent during
2008.


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                           Next release – March 26, 2010, 8:30 A.M. EDT for:
                     Gross Domestic Product:  Fourth Quarter 2009 (Third Estimate)
                               Corporate Profits:  Fourth Quarter 2009