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2nd LD Writethru: U.S. Q4 economic growth revised down to 2.2 pct

Xinhua, February 27, 2015 Adjust font size:

The U.S. economy expanded at a 2.2 percent annual rate in the fourth quarter of 2014, revised down from the advance estimate of 2.6 percent, according to the second estimate from the U.S. Commerce Department released Friday.

The U.S. economy grew 5 percent in the third quarter and 4.6 percent in the second quarter after contracting in the first quarter of 2014. In 2014, the economy expanded 2.4 percent year on year, compared with an increase of 2.2 percent in 2013.

The Commerce Department said in a statement that the revised-down figure mainly reflected that the private inventory investment increased less than previously estimated.

The broad data in the fourth quarter showed a mixed picture for the economy. Personal consumption expenditures expanded at the fastest pace in four years, while business investment, government spending and exports decelerated.

Personal consumption expenditures contributed 2.83 percentage points to the GDP growth in the fourth quarter, higher than its 2.21-percentage-point contribution in the third quarter. In the fourth quarter, consumption expenditures increased 4.2 percent, compared with an increase of 3.2 percent in the third quarter.

Strong domestic demand drove up imports in the fourth quarter, which subtracted 1.58 percentage points from GDP growth compared with a 0.16 percentage point contribution in the previous quarter.

Compared with the previous quarter, other economic indicators recorded less contribution to the GDP growth in the fourth due to their slower growth.

Nonresidential fixed investment rose 4.8 percent in the fourth quarter, decelerating from the 8.9 percent growth in the third; exports growth slowed to 3.2 percent in the fourth, and the federal government spending decreased 7.5 percent in the fourth, in contrast to an increase of 9.9 percent in the third.

Inflation pressures remained muted in the fourth quarter. The personal consumption expenditures price index fell to a 0.4 percent annual rate in the quarter, the weakest reading since early 2009. Endi