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Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2017, according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent.

The increase in real GDP reflected increases in consumer spending, business investment, exports, housing investment, as well as federal and state and local government spending. These contributions were partly offset by declines in inventories. Imports, which are a subtraction in the calculation of GDP, increased.

Prices of goods and services purchased by U.S. residents increased 2.5 percent in the fourth quarter after increasing 1.7 percent in the third quarter. Excluding food and energy, prices rose 1.9 percent in the fourth quarter after increasing 1.6 percent in the third quarter.

Real disposable personal income—personal income adjusted for taxes and inflation—increased 1.1 percent in the fourth quarter after increasing 0.5 percent in the third quarter. Personal saving as a percentage of disposable personal income was 2.6 percent in the fourth quarter, compared with 3.3 percent in the third quarter.

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