2/27/15, "U.S. economic growth in fourth quarter revised down to 2.2%," AP via LA Times
"The U.S. economy slowed more sharply in the final three months of the
year than initial estimates, reflecting weaker business stockpiling and a
bigger trade deficit.
The Commerce Department said Friday that
the economy as measured by the gross domestic product grew at an annual
rate of 2.2% in the October-December quarter, weaker than the 2.6% first
estimated last month. It marked a major slowdown from the third
quarter, which had been the strongest growth in 11 years....
For all of 2014, the economy expanded 2.4%, up slightly from 2.2% growth in 2013.
spending, which accounts for 70% of economic activity, was a bright
spot in the fourth quarter. It expanded at an annual rate of 4.2%, down
slightly from the first estimate of 4.3% growth but still the best
showing since the first quarter of 2006.
report was the second of three estimates for fourth quarter GDP, the
broadest measure of the economy's total output of goods and services....
The downward revision stemmed largely from slower stockpiling by
businesses. Last month, the rise in inventories was estimated to have
added 0.8%age points to fourth quarter growth. But that was lowered to a
contribution of just 0.1%age point in the new estimate. The change,
however, will likely translate into stronger growth in the current
quarter because businesses will not have to work down an overhang of
Trade also weighed more heavily on growth than first
thought, subtracting 1.2%age points as imports grew much more strongly
than first thought. That could be a reflection of the rising value of
the dollar, which makes imported products cheaper for U.S. consumers.
analysts believe 2015 will start slowly, in part reflecting the
disruptions caused by a rough winter. However, it's unlikely to be as
bad as the first quarter of 2014, when heavy snow and cold contributed
to a 2.1% plunge in growth in the first quarter of 2014."...
US Quarterly GDP, 2011-2014: