US GDP rises 4.3% in fourth quarter

US real gross domestic product (GDP) increased at a 4.3% annualised rate during the fourth quarter of 2020, according to a third revised estimate by the US Bureau of Economic Analysis, Kallanish reports.

The latest estimate indicates a revision on 0.2% from the Bureau’s second revised estimate in early March. The third revision is up 0.3% from the Bureau’s first early estimate in January.

According to the Bureau, the upward revision indicates an increasing revision for US private inventory investment which was partially offset by a declining revision for non-residential fixed investment.

The increased investment in private goods-producing industries is reflecting increased spending in construction and durable goods manufacturing, the Bureau adds. Meanwhile, the rise in durable goods manufacturing has primarily been driven by the computer, electronics, and fabricated metal products sub-sectors.

In an on-year analysis, US GDP is down -3.3% in 2020 from the year prior. Over the past 20 years, the only yearly declines in GDP growth were from 2007 to 2008 (-0.1%) and from 2008 to 2009 (-2.5%).

Zach Johnson USA