From the Joint Congressional Economic Committee:
The Bureau of Economic Analysis (BEA) announced today that the gross domestic product (GDP) increased at an inflation-adjusted annual rate of 3.1 percent in the fourth quarter of 2004. This follows growth of 4.0 percent during the third quarter of 2004.
Highlights:
* GDP increased at an inflation-adjusted annual rate of 3.1 percent in the fourth quarter of 2004, following an increase of 4.0 percent in the third quarter.
* The slowdown in GDP growth in the fourth quarter relative to the third quarter reflected:
o An increase in the trade deficit; exports fell as imports rose.
o A slowdown in consumer spending; consumer spending grew at a healthy 4.6 percent annual rate in the fourth quarter on the heels of 5.1 percent growth in the previous quarter.
* Fourth quarter GDP growth was boosted by inventory investment, which had pulled growth down in the third quarter.
* Real GDP increased 4.4 percent in 2004 compared with an increase of 3.0 percent in 2003. Growth in 2004 was the highest since 1999.
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