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 preliminary estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was also 0.6 percent.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential structures, state and local government spending, 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, decreased.

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 downturn in imports.

Final sales of computers contributed 0.16 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 0.85 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 3.9 percent in the fourth quarter, 0.1 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 2.5 percent in the fourth quarter, compared with an increase of 1.9 percent in the third.

Real personal consumption expenditures increased 1.9 percent in the fourth quarter, compared with an increase of 2.8 percent in the third. Real nonresidential fixed investment increased 6.9 percent, compared with an increase of 9.3 percent. Nonresidential structures increased 14.7 percent, compared with an increase of 16.4 percent. Equipment and software increased 3.3 percent, compared with an increase of 6.2 percent. Real residential fixed investment decreased 25.2 percent, compared with a decrease of 20.5 percent.

Real exports of goods and services increased 4.8 percent in the fourth quarter, compared with an increase of 19.1 percent in the third. Real imports of goods and services decreased 1.9 percent, in contrast to an increase of 4.4 percent.

Real federal government consumption expenditures and gross investment increased 0.9 percent in the fourth quarter, compared with an increase of 7.1 percent in the third. National defense decreased 0.3 percent, in contrast to an increase of 10.1 percent. Nondefense increased 3.4 percent, compared with an increase of 1.1 percent. Real state and local government consumption expenditures and gross investment increased 3.0 percent, compared with an increase of 1.9 percent.

The real change in private inventories subtracted 1.49 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 $10.1 billion in the fourth quarter, following increases of $30.6 billion in the third quarter and $5.8 billion in the second.

Real final sales of domestic product -- GDP less change in private inventories -- increased 2.1 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 -- decreased 0.3 percent in the fourth quarter, in contrast to an increase of 3.3 percent in the third.

Current-dollar GDP

Current-dollar GDP -- the market value of the nation''s output of goods and services – increased 3.3 percent, or $113.6 billion, in the fourth quarter to a level of $14,084.1 billion. In the third quarter,current-dollar GDP increased 6.0 percent, or $201.7 billion.

Revisions

The preliminary estimate of the fourth-quarter increase in real GDP is the same as the advance estimate issued last month, primarily reflecting a downward revision to imports that was largely offset by a downward revision to private inventory investment.