The third and final estimate of fourth quarter GDP was at 2.1% and the composition of growth was not much changed from the prior two reports.
In the end, personal consumption expenditures (up 1.8%, 1.24 contribution) and net exports (-$557.9 billion, 1.51 contribution) were the main positives for the expansion.
With the first quarter 2020 nearly over, the fourth quarter report fades in importance in spite of turning in growth of 2.3% for 2019 as a whole. The arrival of COVID-19 and the measures to stem its spread are going to hurt growth in the first quarter — maybe even bring it into contraction — and probably presage a downturn for the second quarter.
Disclaimer: Whetstone Analysis provides commentary as a service to its subscribers. Whetstone Analysis is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated and every effort is made to ensure its accuracy, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date. Click here to read our full Disclaimer.