Consumer spending, C was the bright spot, yet that's not saying much. With a 1.46 percentage point increase, that is not as strong as Q3 or Q2. Below is a percentage change graph in real consumer spending going back to 2000.
Goods contributed 0.53 percentage points to GDP and within goods, durables was 0.32 percentage points. Services was a 0.93 percentage point contribution. Within services, health care was a 0.43 percentage point contribution to Q4 GDP. Graphed below is PCE with the quarterly annualized percentage change breakdown of durable goods (red or bright red), nondurable goods (blue) versus services (maroon).
Imports and Exports, M & X show some imploding with a –0.47 percent point contribution. This is the advance GDP estimate, hence actual trade data hasn't come in yet and imports are almost always revised upward, even with petroleum imports declining as a trend.
Government spending, G contributed 0.12 percentage points to Q4 GDP with0.14 percentage points contributed by national defense.
Fixed investment is residential and nonresidential and was just 0.03 percentage points of GDP contribution. Nonresidential was a -0.24 individual percentage point contribution. Within nonresidential, both structures and equipment were -0.15 GDP percentage points.
Nominal GDP: In current dollars, not adjusted for prices, of the U.S. output,was $18,128.2 billion, a 1.5% annualized increase for Q3 from Q4. In Q3, current dollar GDP increased 3.3%, showing Q4's growth was less than half of Q3.
The price index for gross domestic purchases increased 0.2% for Q4. Without food and energy considered, the core price index increased 0.9%. In Q3 the price index was 1.3% for both the overall and without food and energy considered. That's quite below the Federal Reserve's target inflation rate, especially when taking gasoline prices out of the equation. Below is the price index for gross domestic purchases.
This GDP report implies a continuing slowing economy. Contracting inventories for two quarters in a row is of particular concern and might imply businesses are not expecting a surge of new business. Most telling is how consumer spending growth is slowing. While the last employment report was strong, it is doubtful that will continue as jobs are correlated to real economic growth.