The US economy grew at an annual rate of 3% according to today’s revision of Q4 2011 Real U.S. GDP by the Bureau of Economic Analysis (BEA) from the previously reported 2.8%. This uptick was not expected, as a Bloomberg survey of economists had predicted no change from the number initially reported, and in fact some 35% of the economists surveyed had looked for a downward revision. According to the BEA, the upside reflected an upward adjustment to consumer spending for services and a downward adjustment in consumer spending on durable goods.

Current-dollar GDP, the market value of the nation’s output of goods and services, increased 3.9%, or $144.7 billion, during Q4 2011 to a level of $15.3 trillion from about $15.1 trillion in Q3 2011. During Q3 2011, current-dollar GDP increased 4.4%, or $163.3 billion, from about $14.93 trillion.

2011 GDP Increases at Slower Rate than 2010

For the full year 2011, U.S. real GDP increased 1.7% from annual 2010 levels. This was a slower rate of increase than the 3% growth in GDP recorded between 2009 and 2010. BEA data indicates the increase in real GDP in 2011 primarily reflected positive contributions from personal consumption, exports, and nonresidential fixed investment that were partly offset by negative contributions from state and local government spending, private inventory investment, and federal government spending.

Current-dollar GDP increased about 4%, or $567.9 billion, in 2011 to a level of about $15.1 trillion from about 14.53 trillion.  In 2010, current-dollar GDP increased 4.2%, or $587.5 billion from about $13.94 trillion.

The deceleration in real GDP in 2011 primarily reflected downturns in private inventory investment and in federal government spending and a deceleration in exports that were partly offset by a deceleration in imports and an acceleration in nonresidential fixed investment.

Source: Bureau of Economic Analysis, Bloomberg