US Q4 GDP (second reading) +3.2% vs +3.3% expected
Advance Q4 reading was +3.2% annualizedFinal Q3 reading was +5.2% annualizedQ2 was +2.1% annualizedDetails:Consumer spending 3.0% vs +2.8% advance Consumer spending on durables +3.2% vs +4.6% advanceGDP final sales +3.5% vs +3.2% advanceGDP deflator 1.7% vs +1.5% advanceCore PCE +2.1% vs +2.0% advance (+2.0% prior)Business investment +0.9% vs +2.1% advanceFull reportSome of the details in the report like business investment and consumer spending on durables point to a weaker environment than believed. Percentage point changes:Net trade +0.32 pp vs +0.43 pp advance Inventories +0.27 pp vs +0.07 pp advanceGovt +0.73 pp vs +0.56 pp advanceThe picture in the GDP report is of weaker business investment and consumer spending with a stronger-than-believed contribution from government spending and inventory building. Those are downside risks for 2024 growth and that's why the US dollar softened on the report. This article was written by Adam Button at www.forexlive.com.
Details:
- Consumer spending 3.0% vs +2.8% advance
- Consumer spending on durables +3.2% vs +4.6% advance
- GDP final sales +3.5% vs +3.2% advance
- GDP deflator 1.7% vs +1.5% advance
- Core PCE +2.1% vs +2.0% advance (+2.0% prior)
- Business investment +0.9% vs +2.1% advance
- Full report
Some of the details in the report like business investment and consumer spending on durables point to a weaker environment than believed.
Percentage point changes:
- Net trade +0.32 pp vs +0.43 pp advance
- Inventories +0.27 pp vs +0.07 pp advance
- Govt +0.73 pp vs +0.56 pp advance
The picture in the GDP report is of weaker business investment and consumer spending with a stronger-than-believed contribution from government spending and inventory building. Those are downside risks for 2024 growth and that's why the US dollar softened on the report. This article was written by Adam Button at www.forexlive.com.
