OECD reports private consumption growth slows in fourth quarter of 2015

OECD reports private consumption growth slows in fourth quarter of 2015

Real GDP growth in the OECD area slowed slightly to 0.4% in the fourth quarter of 2015, compared with 0.5% in the previous quarter, reflecting slower growth in private consumption (whose contribution fell to 0.3 percentage point compared with 0.4 percentage point in the previous quarter). Contributions from government consumption and investment (0.1 percentage point) were unchanged from the previous quarter, while the contribution from stock building increased (up 0.1 percentage point) but these contributions were partly offset by a fall in the contribution from net exports

OECD Graph 1


OECD Graph 2

The contribution of private consumption to overall GDP growth was lower in nearly all major economies in the fourth quarter of 2015 compared to the previous quarter but remained the main driver of growth in Italy, the United Kingdom and the United States.

In Italy, GDP grew by 0.1%, with positive contributions from private consumption (0.2 percentage point), government consumption, investment and net exports (0.1 percentage point each). Destocking dragged down GDP growth by 0.4 percentage point.

In the United Kingdom, private consumption contributed 0.4 percentage point to overall GDP growth (0.6%) as much as stockbuilding, followed by government consumption which contributed 0.1 percentage point. On the other hand, net exports continued to drag down GDP growth (by 0.3 percentage point) but less significantly than in the previous quarter (minus 1.1 percentage point); investment also reduced GDP growth (by 0.2 percentage point).

In the United States, private consumption was also the main contributor to GDP growth (0.3 %), with 0.4 percentage point, but with destocking reducing GDP growth by 0.1 percentage point.

In France and Germany, GDP grew by 0.3% with stock building (0.6 percentage point) and investment (0.3 percentage point) respectively, the main drivers. However, in both countries, net exports continued to drag down overall growth (by 0.5 percentage point). In France private consumption (with a contribution of minus 0.1 percentage point) dragged down GDP.

In Canada, GDP growth slowed markedly to 0.2 % in the fourth quarter of 2015, down from 0.6 % in the previous quarter. The slowdown was mainly due to lower positive contributions from net exports and private consumption compared with the previous quarter (0.6 and 0.1 percentage point, respectively, compared with 1.0 and 0.3 in the previous quarter).

In Japan, GDP contracted (minus 0.3%) as private consumption fell significantly (contributing minus 0.5 percentage point to overall growth). However, this negative impact was moderated slightly by positive contributions from government consumption and net exports (0.1 percentage point each).

OECD Graph 3


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