US GDP Revised Up But Growth Lacklustre

Latest data paint a picture of somewhat lacklustre growth going into Q1 2016, even as the final release for Q4 2015 GDP growth was revised up. Instead of the 1.0% (q-o-q annualized) increase that was previously announced, the Q4 economy actually advanced by 1.4%. This was down from 2.0% in Q3, however, but in y-o-y terms activity managed to maintain a 2.1% pace in the second half of 2015. The Q4 national accounts also saw an upward revision to personal consumption growth, from 2.0% (q-o-q annualized) in the preliminary release to 2.4% (this, too, was still down from the previous quarter’s 3.0% outturn). On the downside, business investment was downgraded from -1.9% to -2.1% while pre-tax corporate profits were markedly weak, falling from an annualized -6.2% showing in Q3 to an even deeper -27.7% in Q4. Export-oriented industries have been hit by the strong US dollar against other currencies, while the sharp decline in commodity prices has hit the energy sector and prompted cutbacks in investment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s