REPEAT: MNI DATA ANALYSIS: US 4Q GDP Revised Down To +2.5%>

Repeats Story Initially Transmitted at 13:30 GMT Feb 28/08:30 EST Feb 28

--Downward Adjustment To Inventories Key Factor

--Core PCE Price Index Unrevised At +1.9%; Y/Y Still +1.5%

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - Fourth quarter GDP growth was revised down 

slightly to a 2.5% annual rate from the 2.6% pace in the advance 

estimate, as expected, data released Wednesday by the Bureau of Economic 

Analysis showed. 

     A downward revision to inventory growth was the key factor, 

supplemented by slower nonresidential fixed investment and government 

spending growth. Residential fixed investment growth was stronger, while 

the net export gap was modestly narrower. PCE growth was unrevised.

--PICTURE REMAINS THE SAME

     Overall, the data suggest little change in the overall 

growth picture, with the mix resulting a slight upward adjustment to 

final sales. Likewise, the price picture was virtually untouched from 

the advance estimate.

     Inventory investment was revised down to an $8.0 gain for the 

quarter from $9.2 billion in the advance estimate. The net export gap 

now stands at $652.2 billion, only modestly than $652.6 billion gap in 

the advance estimate. 

     Within consumption, which is still reported up 3.8% for the 

quarter, there was a downward revisions to goods PCE, offset by an 

upward adjustment services PCE. 

     The personal 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. 

     Nonresidential fixed investment was revised slightly lower to a 

6.6% pace from the 6.8% gain in the advance estimate, with a downward 

adjustment to intellectual property more than offsetting upward 

revisions to structures and equipment. 

     Residential fixed investment was revised up to 13.0% rate of gain 

from the 11.6% gain in the advance estimate. 

     Government spending was revised down slightly to a 2.9% gain, 

compared with a 3.0% rise in the advance estimate. 

     As a result of the mix of revisions, real final sales of domestic 

product were revised up to a 3.3% gain from the 3.2% increase in the 

advance estimate. Real final sales to domestic purchasers was unrevised 

at a 4.3% pace. 

--PRICE MEASURES ROUGHLY UNREVISED

     The key price measures were generally unrevised in the second 

estimate for the quarter. The chain price index was revised down 

slightly to a 2.3% gain from the previously reported 2.4% rise, still up 

from the 2.1% gain in the second quarter. 

     The closely watched core PCE price index was unrevised at a 1.9% 

gain, keeping the year/year rate for the measure at 1.5%, still slightly 

ahead of the 1.4% rise in the third quarter. 

     ** MNI Washington Bureau: Tel. (202)371-2121 **