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 2.8 percent in the fourth quarter of 2010,
(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 2.6 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 3.2
percent (see "Revisions" on page 3).
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 negative contributions from private inventory investment and state and local government
spending. Imports, which are a subtraction in the calculation of GDP, decreased.
The small fourth-quarter acceleration in real GDP primarily reflected a sharp downturn in
imports, an acceleration in PCE, an upturn in residential fixed investment, and an acceleration in exports
that were mostly offset by downturns in private inventory investment and in federal government
spending, a deceleration in nonresidential fixed investment, and a downturn in state and local
government spending.
Final sales of computers added 0.30 percentage point to the fourth-quarter change in real GDP
after adding 0.29 percentage point to the third-quarter change. Motor vehicle output subtracted 0.31
percentage point from the fourth-quarter change in real GDP after adding 0.49 percentage point to 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 BEAs 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 2.1 percent in the fourth quarter, the same increase as in the advance estimate; this index
increased 0.7 percent in the third quarter. Excluding food and energy prices, the price index for gross
domestic purchases increased 1.2 percent in the fourth quarter, compared with an increase of 0.4 percent
in the third.
Real personal consumption expenditures increased 4.1 percent in the fourth quarter, compared
with an increase of 2.4 percent in the third. Durable goods increased 21.0 percent, compared with an
increase of 7.6 percent. Nondurable goods increased 4.8 percent, compared with an increase of 2.5
percent. Services increased 1.4 percent, compared with an increase of 1.6 percent.
Real nonresidential fixed investment increased 5.3 percent in the fourth quarter, compared with
an increase of 10.0 percent in the third. Nonresidential structures increased 4.5 percent, in contrast to a
decrease of 3.5 percent. Equipment and software increased 5.5 percent, compared with an increase of
15.4 percent. Real residential fixed investment increased 2.8 percent, in contrast to a decrease of 27.3
percent.
Real exports of goods and services increased 9.6 percent in the fourth quarter, compared with an
increase of 6.8 percent in the third. Real imports of goods and services decreased 12.4 percent, in
contrast to an increase of 16.8 percent.
Real federal government consumption expenditures and gross investment decreased 0.2 percent
in the fourth quarter, in contrast to an increase of 8.8 percent in the third. National defense decreased
2.1 percent, in contrast to an increase of 8.5 percent. Nondefense increased 3.7 percent, compared with
an increase of 9.5 percent. Real state and local government consumption expenditures and gross
investment decreased 2.4 percent, in contrast to an increase of 0.7 percent.
The change in real private inventories subtracted 3.70 percentage points from the fourth-quarter
change in real GDP, after adding 1.61 percentage points to the third-quarter change. Private businesses
increased inventories $7.1 billion in the fourth quarter, following increases of $121.4 billion in the third
quarter and $68.8 billion in the second.
Real final sales of domestic product -- GDP less change in private inventories -- increased 6.7
percent in the fourth quarter, compared with an increase of 0.9 percent in the third.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- decreased 0.6 percent in the fourth quarter, in contrast to an increase of 4.2 percent in the
third.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
3.2 percent, or $115.9 billion, in the fourth quarter to a level of $14,861.0 billion. In the third quarter,
current-dollar GDP increased 4.6 percent, or $166.4 billion.
Revisions
The downward revision to the percent change in real GDP primarily reflected an upward revision
to imports and downward revisions to state and local government spending and to personal consumption
expenditures (PCE) that were partly offset by an upward revision to exports.
Advance Estimate Second Estimate
(Percent change from preceding quarter)
Real GDP............................... 3.2 2.8
Current-dollar GDP..................... 3.4 3.2
Gross domestic purchases price index... 2.1 2.1
2010 GDP
Real GDP increased 2.8 percent in 2010 (that is, from the 2009 annual level to the 2010 annual
level), in contrast to a decrease of 2.6 percent in 2009.
The increase in real GDP in 2010 primarily reflected positive contributions from private
inventory investment, exports, PCE, nonresidential fixed investment, and federal government spending.
Imports, which are a subtraction in the calculation of GDP, increased.
The upturn in real GDP primarily reflected upturns in exports, in nonresidential fixed
investment, in PCE, and in private inventory investment and a smaller decrease in residential fixed
investment that were partly offset by an upturn in imports.
The price index for gross domestic purchases increased 1.3 percent in 2010, in contrast to a
decrease of 0.2 percent in 2009.
Current-dollar GDP increased 3.8 percent, or $538.8 billion, in 2010. In contrast, current-dollar
GDP decreased 1.7 percent, or $250.1 billion, in 2009.
During 2010 (that is, measured from the fourth quarter of 2009 to the fourth quarter of 2010),
real GDP increased 2.7 percent. Real GDP increased 0.2 percent during 2009. The price index for gross
domestic purchases increased 1.2 percent during 2010, compared with an increase of 0.5 percent during
2009.
* * *
BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting
the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.
* * *
Next release March 25, 2011, at 8:30 A.M. EDT for:
Gross Domestic Product: Fourth Quarter 2010 (Third)
Corporate Profits: Fourth Quarter 2010
