**MNI 5 Things: US 4Q GDP Revised Modestly Lower, As Expected>

--5 Things We Learned From The Second Estimate of 4Q GDP

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

second estimate of fourth quarter GDP data released Wednesday by the 

Bureau of Economic Analysis: 

     - Fourth quarter GDP was revised slightly lower to +2.5% SAAR, as 

expected, from +2.6% in the advance estimate, so there should be little 

reaction from analysts and the markets.

     - The small downward adjustment to headline GDP reflected downward 

revisions to inventories, nonresidential fixed investment, and 

government spending. Providing some offset, residential investment was 

revised up and the trade gap was smaller. 

     - The PCE measure was unrevised at a +3.8% pace, reflecting a 

downward adjustment to goods that negated upward revisions to services 

PCE. The savings rate was revised up modestly to 2.7% from 2.6% in the 

advance estimate, but was still down sharply from 3.4% in 3Q. 

     - The prices measures were generally unrevised, with the GDP price 

index now +2.3% vs advance +2.4%, while the closely watched core PCE 

was unrevised at +1.9%, keeping the y/y rate at +1.5%, slightly ahead of 

+1.4% in 3Q. 

     - Real final sales to domestic product were revised up to +3.3% vs 

+3.2% in advance estimate, reflecting the downward adjustment to 

inventories. Final sales to domestic purchases were unrevised at +4.3%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]