US GDP revised slightly up to 4.1% in Q4

ANKARA

The US' gross domestic product (GDP) was revised slightly upwards to an annualized rate of 4.1% in the fourth quarter, according to the Commerce Department's second reading of the data Thursday.

While the first reading GDP last month was a 4% increase, analysts expected a 4.2% growth for the second reading.

The revision was due to increases seen in residential fixed investment, private inventory investment and state and local government spending, the agency’s Bureau of Economic Analysis said in a statement.

"The increase in exports primarily reflected an increase in goods, led by industrial supplies and materials," it added.

After the economy shrank by a record 31.4% in the second quarter, GDP increased 33.4% in the third quarter.

Overall, the American economy contracted 3.5% in 2020 due to the coronavirus pandemic -- its worst decline since 1946.

The world's largest economy is still struggling with a weak labor market and high unemployment.

The number of Americans filing first-time unemployment claims, however, decreased by 111,000 to 730,000 last week to its lowest level in three months, the Labor Department said Thursday.

Analysts expected 838,000 for the week ending Feb. 20, while the previous week was revised down by 20,000 from 861,000 to 841,000.

Despite the fall in claims, there are still 10.1 million jobless Americans since the pandemic-hit economy shed 22 million positions in March and April.

President Joe Biden's $1.9 trillion relief plan, which includes $1,400 stimulus checks for individuals and help for vaccine distribution efforts, still faces opposition from Republican lawmakers.