Business situation: advance estimates for the fourth quarter of 2003 and for the year 2003

The pace of US production moderated in the fourth quarter, as real GDP increased 4.0% after increasing 8.2% in the third quarter. The deceleration mainly reflected slower growth of consumer spending. Inflation slowed: The price index for gross domestic purchases increased 1.0% after increasing 1.8%, mainly reflecting a downturn in energy prices. In 2003, real GDP increased 3.1% after increasing 2.2% in 2002. The step-up mainly reflected upturns in nonresidential investment and exports; consumer spending slowed, and inventory investment turned down.