The following is the unedited transcript of the news release from the U.S. Bureau of Economic Analysis.


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 0.6 percent in the fourth quarter of 2007, according to advance estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential structures, state and local government spending, exports, and equipment and software that were largely offset by negative contributions from private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased slightly.

The deceleration in real GDP growth in the fourth quarter primarily reflected a downturn in inventory investment and decelerations in exports, in PCE, and in federal government spending that were partly offset by a deceleration in imports and an acceleration in state and local government spending.

Final sales of computers contributed 0.18 percentage point to the fourth-quarter growth in real GDP after contributing 0.28 percentage point to the third-quarter growth. Motor vehicle output subtracted 0.90 percentage point from the fourth-quarter growth in real GDP after contributing 0.36 percentage point to the third-quarter growth.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.8 percent in the fourth quarter, compared with an increase of 1.8 percent in the third. Excluding food and energy prices, the price index for gross domestic purchases increased 2.5 percent in the fourth quarter, compared with an increase of 1.9 percent in the third.

Real personal consumption expenditures increased 2.0 percent in the fourth quarter, compared with an increase of 2.8 percent in the third. Durable goods increased 4.2 percent, compared with an increase of 4.5 percent. Nondurable goods increased 1.9 percent, compared with an increase of 2.2 percent. Services expenditures increased 1.6 percent, compared with an increase of 2.8 percent.

Real nonresidential fixed investment increased 7.5 percent in the fourth quarter, compared with an increase of 9.3 percent in the third. Nonresidential structures increased 15.8 percent, compared with an increase of 16.4 percent. Equipment and software increased 3.8 percent, compared with an increase of 6.2 percent. Real residential fixed investment decreased 23.9 percent, compared with a decrease of 20.5 percent.

Real exports of goods and services increased 3.9 percent in the fourth quarter, compared with an increase of 19.1 percent in the third. Real imports of goods and services increased 0.3 percent, compared with an increase of 4.4 percent.

Real federal government consumption expenditures and gross investment increased 0.3 percent in the fourth quarter, compared with an increase of 7.1 percent in the third. National defense decreased 0.6 percent, in contrast to an increase of 10.1 percent. Nondefense increased 2.2 percent, compared with an increase of 1.1 percent. Real state and local government consumption expenditures and gross investment increased 4.0 percent, compared with an increase of 1.9 percent.

The real change in private inventories subtracted 1.25 percentage points from the fourth-quarter change in real GDP after adding 0.89 percentage point to the third-quarter change. Private businesses decreased inventories $3.4 billion in the fourth quarter, following increases of $30.6 billion in the third and $5.8 billion in the second. Real final sales of domestic product -- GDP less change in private inventories -- increased 1.9 percent in the fourth quarter, compared with an increase of 4.0 percent in the third.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.2 percent in the fourth quarter, compared with an increase of 3.3 percent in the third.

Disposition of personal income

Current-dollar personal income increased $129.1 billion (4.5 percent) in the fourth quarter, compared with an increase of $169.4 billion (6.0 percent) in the third.Personal current taxes increased $22.3 billion in the fourth quarter, compared with an increase of $11.6 billion in the third.

Disposable personal income increased $106.8 billion (4.2 percent) in the fourth quarter, compared with an increase of $157.8 billion (6.4 percent) in the third. Real disposable personal income increased 0.3 percent, compared with an increase of 4.5 percent.


Personal outlays increased $138.3 billion (5.5 percent) in the fourth quarter, compared with an increase of $131.7 billion (5.3 percent) in the third. Personal saving -- disposable personal income less personal outlays -- was $25.1 billion in the fourth quarter, compared with $56.7 billion in the third. The personal saving rate -- saving as a percentage of disposable personal income -- was 0.2 percent in the fourth quarter, compared with 0.6 percent in the third. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.