Washington, DC…Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 2.4 percent in the fourth quarter of 2013 (that is, from the third quarter to the fourth quarter), according to the “second” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.1 percent. The GDP estimate released today is based on more complete source data than were available for the “advance” estimate issued last month. In the advance estimate, the increase in real GDP was 3.2 percent. With this second estimate for the fourth quarter, an increase in personal consumption expenditures (PCE) was smaller than previously estimated

The increase in real GDP in the fourth quarter primarily reflected positive contributions from
PCE, exports, nonresidential fixed investment, and private inventory investment that were partly offset
by negative contributions from federal government spending, residential fixed investment, and state and
local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP growth in the fourth quarter reflected a deceleration in private
inventory investment, a larger decrease in federal government spending, and downturns in residential
fixed investment and in state and local government spending that were partly offset by accelerations in
exports, in PCE, and in nonresidential fixed investment and a deceleration in imports.

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FOOTNOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent
changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2009)
dollars. Price indexes are chain-type measures.

This news release is available on BEA’s Web site along with the Technical Note and Highlights related to this release. For
information on revisions, see “Revisions to GDP, GDI, and Their Major Components”.
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The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.5 percent in the fourth quarter, 0.3 percentage point more than in the advance estimate; this
index increased 1.8 percent in the third quarter. Excluding food and energy prices, the price index for
gross domestic purchases increased 1.8 percent in the fourth quarter, compared with an increase of 1.5
percent in the third.

Real personal consumption expenditures increased 2.6 percent in the fourth quarter, compared
with an increase of 2.0 percent in the third. Durable goods increased 2.5 percent, compared with an
increase of 7.9 percent. Nondurable goods increased 3.5 percent, compared with an increase of 2.9
percent. Services increased 2.2 percent, compared with an increase of 0.7 percent.

Real nonresidential fixed investment increased 7.3 percent in the fourth quarter, compared with
an increase of 4.8 percent in the third. Nonresidential structures increased 0.2 percent, compared with
an increase of 13.4 percent. Equipment increased 10.6 percent, compared with an increase of 0.2
percent. Intellectual property products increased 8.0 percent, compared with an increase of 5.8 percent.
Real residential fixed investment decreased 8.7 percent, in contrast to an increase of 10.3 percent.

Real exports of goods and services increased 9.4 percent in the fourth quarter, compared with an
increase of 3.9 percent in the third. Real imports of goods and services increased 1.5 percent, compared
with an increase of 2.4 percent.

Real federal government consumption expenditures and gross investment decreased 12.8 percent
in the fourth quarter, compared with a decrease of 1.5 percent in the third. National defense decreased
14.4 percent, compared with a decrease of 0.5 percent. Nondefense decreased 10.1 percent, compared
with a decrease of 3.1 percent. Real state and local government consumption expenditures and gross
investment decreased 0.5 percent, in contrast to an increase of 1.7 percent.

The change in real private inventories added 0.14 percentage point to the fourth-quarter change
in real GDP, after adding 1.67 percentage points to the third-quarter change. Private businesses
increased inventories $117.4 billion in the fourth quarter, following increases of $115.7 billion in the
third quarter and $56.6 billion in the second.

Real final sales of domestic product — GDP less change in private inventories — increased 2.3
percent in the fourth quarter, compared with an increase of 2.5 percent in the third.

Gross domestic purchases

Real gross domestic purchases — purchases by U.S. residents of goods and services wherever
produced — increased 1.4 percent in the fourth quarter, compared with an increase of 3.9 percent in the
third.

Current-dollar GDP

Current-dollar GDP — the market value of the nation’s output of goods and services — increased
4.0 percent, or $167.8 billion, in the fourth quarter to a level of $17,080.7 billion. In the third quarter,
current-dollar GDP increased 6.2 percent, or $251.9 billion.

Revisions

The second estimate of the fourth-quarter percent change in real GDP is 0.8 percentage point, or
$32.7 billion, less than the advance estimate issued last month, primarily reflecting downward revisions
to personal consumption expenditures (PCE), to private inventory investment, to exports, and to state
and local government spending that were partly offset by an upward revision to nonresidential fixed
investment.

Advance Estimate Second Estimate
(Percent change from preceding quarter)
Real GDP…………………………. 3.2 2.4
Current-dollar GDP………………… 4.6 4.0
Gross domestic purchases price index… 1.2 1.5

2013 GDP

Real GDP increased 1.9 percent in 2013 (that is, from the 2012 annual level to the 2013 annual
level), compared with an increase of 2.8 percent in 2012.

The increase in real GDP in 2013 primarily reflected positive contributions from PCE, exports,
nonresidential fixed investment, residential fixed investment, and private inventory investment that were
partly offset by a negative contribution from federal government spending. Imports, which are a
subtraction in the calculation of GDP, increased.

The deceleration in real GDP growth in 2013 primarily reflected a deceleration in nonresidential
fixed investment, a larger decrease in federal government spending, and decelerations in PCE and in
exports that were partly offset by a deceleration in imports and a smaller decrease in state and local
government spending.

The price index for gross domestic purchases increased 1.2 percent in 2013, compared with an
increase of 1.7 percent in 2012.

Current-dollar GDP increased 3.4 percent, or $552.9 billion, in 2013, to a level of $16,797.5
billion, compared with an increase of 4.6 percent, or $710.8 billion, in 2012.

During 2013 (that is, measured from the fourth quarter of 2012 to the fourth quarter of 2013),
real GDP increased 2.5 percent. Real GDP increased 2.0 percent during 2012. The price index for gross
domestic purchases increased 1.2 percent during 2013, compared with an increase of 1.5 percent during
2012.

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