The U.S economy slowed in the fourth quarter of 2015 as real gross domestic product expanded at an annual rate of 1.4 percent, according to the third estimate released by the Bureau of Economic Analysis.
Real GDP is adjusted for inflation and represents "the value of the production of goods and services in the economy," according to the bureau. The third estimate of 1.4 percent growth was based on more complete source data and was revised upward from the previously reported rate of 1 percent in February.
The fourth quarter real GDP of 1.4 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.
"The deceleration in real GDP in the fourth quarter primarily reflected downturns in nonresidential fixed investment and in state and local government spending, a deceleration in [personal consumption expenditures], and a downturn in exports that were partly offset by a smaller decrease in private inventory investment, a downturn in imports, and an acceleration in federal government spending," the bureau states.
The bureau will release its advance estimate for the first quarter of 2016 on April 28.