The United States’ Real Gross Domestic Product (GDP) expanded at an annual rate of 4% in the fourth quarter, the US Bureau of Economic Analysis’ advance estimate showed on Thursday. This reading followed the 33.4% growth recorded in the third quarter and came in line with analysts’ estimates.
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The US Dollar Index edged slightly higher after this report and was last seen gaining 0.19% on the day at 90.81.
“The increase in real GDP reflected increases in exports, nonresidential fixed investment, personal consumption expenditures (PCE), residential fixed investment, and private inventory investment.”
“Increases were partly offset by decreases in state and local government spending and federal government spending.”
“Imports, which are a subtraction in the calculation of GDP, increased.”
“Current-dollar personal income decreased $339.7 billion in the fourth quarter, compared with a decrease of $541.5 billion in the third quarter.”
“Real GDP decreased 3.5% in 2020 (from the 2019 annual level to the 2020 annual level), compared with an increase of 2.2%.”