The U.S economy slowed in the fourth quarter of 2015 as real gross domestic product (GDP) expanded at an annual rate of 1 percent, according to a revised estimate released by the Bureau of Labor Statistics.
Real GDP is adjusted for inflation and represents “the value of the production of goods and services in the economy,” according to the bureau. Wall Street Journal economists forecasted a lower rate of growth, predicting GDP would grow at a rate of 0.4 percent.
The second estimate of 1 percent growth was based on more complete source data and was revised upward from the previously reported rate of 0.7 percent in January.
The fourth quarter real GDP of 1 percent, which includes performance from October, November, and December of 2015, was lower than the third quarter real GDP estimate of 2 percent, which encompassed the months of July, August and September. It was also lower than the second quarter estimate of 3.9 percent.
“Friday’s revision showed consumer spending was slightly weaker than initially estimated,” the Wall Street Journal wrote. “But there was far less of a drag on growth from the decrease in companies’ inventory investment than first thought.”
BEA will release a third GDP estimate for the fourth quarter of 2015 on March 25.