Commerce revises U.S. Q4 GDP estimate upward

The United States economy grew 1.4 percent in the fourth quarter of 2015, double the government’s original estimate, while durable goods orders continued to slow, according to figures from the U.S. Department of Commerce.    The United States economy grew 1.4 percent in the fourth quarter of 2015, double the government’s original estimate and up from 1 percent in an interim estimate a few weeks ago.
   Growth slowed from 2 percent in the third quarter of 2015, but not as much as initially estimated.
   For the year, U.S. gross domestic product (GDP), the broadest measure of economic activity, increased 2.4 percent, the same as in 2014. The U.S. economy is one of the strongest in the world today, with the housing and financial markets in strong positions, job creation on the rise and unemployment low, cheap energy from domestic oil and gas production, and positive consumer confidence.
   But that economic strength is relative to the rest of the world. The U.S. economy has not taken off to the extent that the Federal Reserve, policymakers and business leaders had hoped, with wages and inflation still relatively flat.
   The Bureau of Economic Analysis final GDP estimate for the fourth quarter is based on more complete data showing that personal consumption and federal government spending increased, while imports decreased (imports are an offset to productivity calculations). Exports fell in Q4 2015 compared with the same 2014 period and were a negative contribution to GDP.
   Meanwhile, the Census Bureau reported Thursday that durable goods orders decreased 2.8 percent in February, or $6.6 billion, to $229.4 billion. Durable goods orders have fallen three of the last four months.
   Transportation equipment led the decrease, falling $4.9 billion, or 6.2 percent to $74.2 billion. Shipments of manufactured durable goods in February, down two of the last three months, decreased $2.1 billion to $238.3 billion.
   Inventories of durable goods ticked down 0.3 percent to $394.3 billion. High inventory levels continue to dampen U.S. truck volumes.
   January was the outlier in durable goods orders, with 4.3 percent growth. The increase in goods needing to be moved along with cargo delays because of bad weather in January contributed to the 7.2 percent monthly hike in truck tonnage last month (8.6 percent on an annual basis).