The Bureau of Economic Analysis today released its latest National Income and Product Accounts report, which revealed that real gross domestic product (GPD) grew by 2.6 percent year-over-year in the fourth quarter of 2017, a slight slowdown from Q3’s 3.2 percent year-over-year growth. The current-dollar GDP increased 5.0 percent to $19,738.9 billion.
Overall, real GDP increased 2.3 percent in 2017 — 0.8 percentage points higher than 2016’s growth (1.5 percent), and the current-dollar GDP increased by 4.1 percent to $19,386.8 billion.
The Bureau says Q4’s year-over-year growth is due to personal consumption expenditures (PCE), nonresidential and residential fixed investments, state and local government spending and federal government spending, which was “partly offset by a negative contribution from private inventory investment.”
National Association of Realtors chief economist Lawrence Yun calls 2017’s GDP “respectable” and says the lack of new residential construction is why the economy failed to reach 3 percent growth.
“The housing market performed reasonably well last…