Text: Commerce Dept Tech Note On 4Q US GDP - Advance Release>

     WASHINGTON (MNI) - The following is the text of a Bureau of 

Economic Analysis technical note for the advance release of fourth 

quarter U.S. GDP released by the Commerce Department: 

Real GDP

     Real GDP increased 2.6 percent (annual rate) in the fourth quarter 

of 2017, following an increase of 3.2 percent in the third quarter of 

2017. The increase in real GDP in the fourth quarter reflected positive 

contributions from personal consumption expenditures (PCE), 

nonresidential fixed investment, exports, residential fixed investment, 

state and local government spending, and federal government spending 

that were partly offset by a negative contribution from private 

inventory investment. Imports, which are a subtraction in the 

calculation of GDP, increased. 

     The deceleration in real GDP growth in the fourth quarter reflected 

a downturn in private inventory investment that was partly offset by 

accelerations in PCE, exports, nonresidential fixed investment, state 

and local government spending, and federal government spending, and an 

upturn in residential fixed investment. Imports, which are a subtraction 

in the calculation of GDP, turned up. 

Key Source Data and Assumptions for the Advance Estimate

     The advance GDP estimate for the fourth quarter of 2017 is based on 

source data that are incomplete and subject to updates. Three months of 

source data were available for consumer spending on goods; shipments of 

capital equipment; motor vehicle sales and inventories; durable goods 

manufacturing inventories; wholesale and retail trade inventories; 

exports and imports of goods; federal government outlays; and consumer, 

producer, and international prices. For major source data series for 

which only two months of data are available, BEA's key assumptions for 

the third month are shown in the "Key Source Data and Assumptions" 

table on the BEA Web site. 

Prices

     The PCE price index increased 2.8 percent in the fourth quarter, 

following an increase of 1.5 percent in the third quarter. Excluding 

food and energy prices, the PCE price index increased 1.9 percent after 

increasing 1.3 percent. 

Disposable Personal Income

     Real disposable personal income increased 1.1 percent in the fourth 

quarter, following an increase of 0.5 percent in the third. The personal 

saving rate was 2.6 percent in the fourth quarter, compared with 3.3 

percent in the third. 

     ** MNI Washington Bureau (202) 371-2121 ** 

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