The preliminary revisions to U.S. GDP were worse than expected for the fourth quarter of 2008, contracting by -6.2% against forecasts for a 5.4% decline, the Bureau of Economic Analysis reported on Friday.
Personal consumption, which accounts for 70% of GDP in the U.S., fell by 4.3% in the quarter, compared to the original estimate of a 3.7% contraction.
Prior to the release, forecasts for Q4 GDP ranged from -3.8% to -6.0%.
There was a large downward revision of gross private investment to -20.8% from -12.3%.
As expected, there was substantial change to inventories, revised down to a $19.9 billion decline compared to the originally reported $6.2 billion increase.
The decline in durable goods was revised upward to a 22.1% decrease from an originally reported 22.4% decline, while non-durable goods was revised down from -7.1% to -9.2%. The services index is now at +1.4%, compared to the original +1.7% reported.
In the trade components, exports were revised down to a -23.6% quarterly decline, compared to the -19.7% estimate in late January, while imports were revised to -16.0% from an original estimate of -15.7%.
The core figure of personal consumption, which excludes food and energy, was revised up by two-tenths to 0.8%.
By Megan Ainscow and edited by Stephen Huebl
©CEP News Ltd. 2009