The second revision (third reading overall) to Q4 GDP in the United States this morning disappointed the market expectation of an upward revision to 2.4% on a QoQ seasonally adjusted annual rate, coming in unchanged from the first revision (second reading) of 2.2%. At left we break down changes as we do with every GDP release. As shown, the only notable revision to Q4 data was inventories, which declined QoQ after increases were recorded on both of the first two readings. There were minor changes in a few other categories that made up for the lower inventories reading. As shown in the bottom of the table this means that domestic private final demand, the best reading of the core trend in the private economy, actually accelerated versus prior readings on GDP. 2014 also went out with the highest growth rate for the full year (2.4%) since 2010 when the bounce back from recession allowed growth of 2.5% for the full year.
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