Real GDP increased 2.1 percent, primarily reflecting positive contributions from consumer spending, inventory investment, residential and nonresidential fixed investment, and state and local government spending.
Net government saving decreased $2.0 billion to –$849.4 billion. Net federal government saving decreased $2.3 billion to –$654.7 billion. Net state and local government saving increased $0.2 billion to –$194.8 billion.
The current-account deficit decreased $3.6 billion to $112.4 billion. In the financial account, net U.S. borrowing decreased $132.4 billion to $92.0 billion.
The net international investment position was –$8,109.7 billion at the end of the fourth quarter, down from –$7,807.3 billion at the end of the third quarter. U.S. liabilities, valued at $32,026.3 billion, exceeded U.S. assets, valued at $23,916.7 billion.
In the fourth quarter of 2016, state personal income slowed in 28 states and fell in Nevada, but it picked up in 15 states. Growth rates ranged from –0.1 percent in Nevada to 1.4 percent in California and Utah. In 2016, growth increased 3.6 percent after increasing 4.5 percent in 2015.