Real US GDP rose at 6.9% annual rate in Q4 2021: BEA

The increase in real GDP primarily reflected increases in private inventory investment, exports, personal consumption expenditures (PCE), and nonresidential fixed investment that were partly offset by decreases in both federal and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased, BEA said in a press release.

In the fourth quarter, COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments—forgivable loans to businesses, grants to state and local governments and social benefits to households—all decreased as provisions of several federal programmes expired or tapered off.

The full economic effects of the COVID-19 pandemic cannot be quantified in the Q4 GDP estimate as the impacts are generally embedded in source data and cannot be separately identified.

The increase in private inventory investment was led by retail and wholesale trade industries. Within retail, inventory investment by motor vehicle dealers was the leading contributor. The increase in exports reflected increases in both goods and services.

The increase in exports of goods was widespread, and the leading contributors were consumer goods, industrial supplies and materials, and food, feeds and beverages. The increase in exports of services was led by travel.

The decrease in federal government spending primarily reflected a decrease in defense spending on intermediate goods and services. The decrease in state and local government spending reflected decreases in consumption expenditures and in gross investment.

The increase in imports primarily reflected an increase in goods, led by non-food and non-automotive consumer goods, as well as capital goods, BEA added.

Fibre2Fashion News Desk (DS)