The U.S. economy grew 4.1% in the fourth quarter of 2020 at an annualised rate, revised data from the U.S. Department of Commerce show.
Thus, the Ministry of Trade has revised upwards the preliminary estimate of GDP growth at 4%.
Experts on average expected it to improve to 4.2%, Trading Economics reports.
The increase in the estimate of US GDP growth in the fourth quarter is due to an upward revision of the dynamics of indicators of investment in residential real estate, private investment in inventories, as well as federal and local government spending. The positive impact of these factors was partially offset by a deterioration in consumer spending estimates.
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Growth in the US economy at the end of last year slowed significantly compared to a record jump in the third quarter of 33.4% in annual terms. The weakening of economic activity in the fourth quarter was associated with a jump in the incidence of COVID-19 and a new wave of restrictive measures.
The PCE Core (Personal Consumption Expenditures, Excluding Food & Energy) index, which the Federal Reserve closely monitors in assessing inflation risks, rose 2.3% in the fourth quarter after rising 3.4% in the previous three months.
At the end of 2020, the US GDP fell by 3.5% – this is the worst dynamics since 1946.