Government Contribution to US GDP Growth

## What this measures

Percentage points of annualized real GDP growth that came from government consumption expenditures and gross investment at the federal, state and local levels.

## Why it matters

It shows how much of a quarter's growth came from public spending rather than private demand, which matters when judging how durable the growth is.

## How to read it

Defense spending and shutdowns move the federal part sharply from quarter to quarter. A negative reading means government purchases fell in real terms that quarter.

## What it does not say

It counts only purchases of goods, services and investment. Transfer payments such as Social Security and unemployment benefits are not in GDP and do not appear here.

## Source

U.S. Bureau of Economic Analysis, National Income and Product Accounts Table 1.1.2 (Contributions to Percent Change in Real Gross Domestic Product), read through FRED, Federal Reserve Bank of St. Louis (series A822RY2Q224SBEA). BEA data are in the public domain. Palanor syncs the series nightly; each quarter's figure is revised with BEA's second and third estimates and annual updates, and the stored history takes those revisions.