Real gross domestic product increased at an annual rate of 2.6% in the fourth quarter of 2022, according to the “third estimate” released March 30 by the Bureau of Economic Analysis (BEA). Real GDP increased 3.2% in the third quarter of last year.

The latest GDP estimate is based on “more complete source data than were available for the ‘second’ estimate” issued in February, according to the BEA. In the second estimate, the increase in real GDP was 2.7%.

The revision “primarily reflected downward revisions to exports and consumer spending,” the BEA said in a news release.

The bureau said the increase in real GDP reflected increases in private inventory investment, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending that were partly offset by decreases in residential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, decreased, according to the BEA.

“The increase in private inventory investment was led by manufacturing (mainly petroleum and coal products) as well as mining, utilities, and construction (led by utilities),” the bureau said in the release. “The increase in consumer spending reflected an increase in services that was partly offset by a decrease in goods. Within services, the increase was led by health care as well as housing and utilities. Within goods, the leading contributor to the decrease was “other” durable goods (mainly jewelry). Within nonresidential fixed investment, increases in structures and intellectual property products (mainly software) were partly offset by a decrease in equipment.  The increase in federal government spending was led by nondefense spending. The increase in state and local government spending primarily reflected an increase in the compensation of state and local government employees.”