EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Friday, February 26, 2016
BEA 16—08


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Lisa Mataloni: (202) 606-5304 (GDP) gdpniwd@bea.gov
Jeannine Aversa: (202) 606-2649 (News Media)  
National Income and Product Accounts
Gross Domestic Product: Fourth Quarter and Annual 2015 (Second Estimate)
      Real gross domestic product -- the value of the goods and services produced by the nations
economy less the value of the goods and services used up in production, adjusted for price
changes -- increased at an annual rate of 1.0 percent in the fourth quarter of 2015, according to the
"second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased
2.0 percent.

      The GDP estimate released today is based on more complete source data than were available for
the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 0.7
percent. With this second estimate for the fourth quarter, the general picture of economic growth
remains the same; private inventory investment decreased less than previously estimated (see
"Revisions" on page 2).

      The increase in real GDP in the fourth quarter reflected positive contributions from personal
consumption expenditures (PCE), residential fixed investment, and federal government spending that
were partly offset by negative contributions from exports, nonresidential fixed investment, state and
local government spending, and private inventory investment. Imports, which are a subtraction in the
calculation of GDP, decreased.

      The deceleration in real GDP in the fourth quarter primarily reflected a deceleration in PCE and
downturns in nonresidential fixed investment, in state and local government spending, and in exports
that were partly offset by a smaller decrease in private inventory investment, a downturn in imports, and
an acceleration in federal government spending.

      Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 1.2 percent in the fourth quarter, compared with an increase of 2.2 percent in the
third.

_____
FOOTNOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.
Percent changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2009)
dollars. Price indexes are chain-type measures.

This news release is available on BEA's Web site.
_____

      The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 0.4 percent in the fourth quarter, compared with an increase of 1.3 percent in the third.
Excluding food and energy prices, the price index for gross domestic purchases increased 1.0 percent,
compared with an increase of 1.3 percent.

      Current-dollar GDP -- the market value of the goods and services produced by the nations
economy less the value of the goods and services used up in production -- increased 2.0 percent, or
$88.2 billion, in the fourth quarter to a level of $18,148.4 billion. In the third quarter, current-dollar
GDP increased 3.3 percent, or $146.5 billion.


Revisions

      The upward revision to the percent change in real GDP primarily reflected an upward revision to
private inventory investment and a downward revision to imports that were partly offset by downward
revisions to state and local government spending and to personal consumption expenditures. For more
information, see the Technical Note. For information on revisions, see "The Revisions to GDP, GDI,
and Their Major Components."


                               Advance Estimate        Second Estimate

                               (Percent change from preceding quarter)
Real GDP                               0.7                  1.0
Current-dollar GDP                     1.5                  2.0
Gross domestic purchases price index   0.2                  0.4


2015 GDP

      	Real GDP increased 2.4 percent in 2015 (that is, from the 2014 annual level to the 2015
annual level), the same rate as in 2014.

      The increase in real GDP in 2015 primarily reflected positive contributions from personal
consumption expenditures (PCE), nonresidential fixed investment, residential fixed investment, private
inventory investment, state and local government spending, and exports. Imports, which are a
subtraction in the calculation of GDP, increased.

      Comparing real GDP growth in 2015 with growth in 2014, real GDP increased 2.4 percent in
both years, though there were offsetting movements in the components. Decelerations in nonresidential
fixed investment and in exports and an acceleration in imports were offset by accelerations in PCE and
in residential fixed investment, a smaller decrease in federal government spending, and accelerations in
private inventory investment and in state and local government spending.

      The price index for gross domestic purchases increased 0.4 percent in 2015, compared with an
increase of 1.5 percent in 2014.

      Current-dollar GDP increased 3.4 percent, or $594.8 billion, in 2015 to a level of $17,942.9
billion, compared with an increase of 4.1 percent, or $684.9 billion, in 2014.

      During 2015 (that is, measured from the fourth quarter of 2014 to the fourth quarter of 2015),
real GDP increased 1.9 percent, compared with an increase of 2.5 percent during 2014.  The price index
for gross domestic purchases increased 0.4 percent during 2015, compared with an increase of 1.2
percent during 2014.

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                        Next release -- March 25, 2016 at 8:30 A.M. EDT for:
              Gross Domestic Product:  Fourth Quarter and Annual 2015 (Third Estimate)
                         Corporate Profits:  Fourth Quarter and Annual 2015