Investment is where the most change occurred
Taking a broad view of the GDP decline from 2.6% to 2.2%, the biggest impact came from a change in the inventory component of the data. Inventory is a component in the Investment portion of the data. Investment which contributed 1.2% of the GDP in the preliminary reading only contributed 0.84% in the second cut. Most of that was due to a reduction in inventories. Instead of contributing 0.82% (from the preliminary), it only contributed 0.12%..
Personal consumption went from 2.87% to 2.83%. This was a bump up from the 3Q and is the highest contribution since March 2006.
Net Exports subtracted -1.15% on the quarter. The US imports more goods than it exports. With sluggish overseas markets, that number became move negative.
Government was little changed.
