Real GDP increased at an annual rate of 3.2% in the fourth quarter of 2013, according to the advance estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.1%.
The increase primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and state and local government spending that were partly offset by negative contributions from federal government spending and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.2% in the fourth quarter, compared with an increase of 1.8% in the third. Excluding food and energy prices, the price index for gross domestic purchases increased 1.7% in the fourth quarter, compared with an increase of 1.5% in the third.