Friday , May 24 2019
Home / unitedstates / The US economy grew faster than expected in the fourth quarter

The US economy grew faster than expected in the fourth quarter


<p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the fourth quarter, US gross domestic product is & nbsp ;Economic Analysis Bureau."Data-Reaid =" 15 "> In the fourth quarter, US Gross Domestic Product grew at a 2.6% annualized rate, according to the latest data from the Economic Analysis Office.

Thursday's report defeated expectations, with consensus economists slowing growth to 2.2% in the last three months of the year. The domestic economy grew by 3.4% and 4.2% in the second quarter.

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Despite the softening of fourth quarter GDP, total growth in 2018 was solid, real GDP & nbsp;grew In 2018, measured at 3.1%, from the fourth quarter of 2017 to the last quarter of 2018. This was the first year of printing, which has been over 3% since 2005, and has surpassed the annual growth rate more than the 3% targeted Trump administration. "Data-Reaid =" 17 "> Despite a slowdown in GDP in the fourth quarter, total growth was solid in 2018, real GDP grew by 3.1% in 2018, from Q4 2017 to This was the first year print, which has been more than 3% since 2005, and surpassed the annual growth rate more than 3% targeted by the Trump administration.

Real GDP grew by 2.9% in 2019 compared to the 2018 annual level, which is higher than the 2.2% comparable growth in 2017.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" The slowdown of real GDP growth in the fourth quarter is private Inventory investments, the slowdown in PCE and federal government spending and the decline in government and local government spending, ”said BEA & nbsp;wrote a statement.& nbsp; “These movements were partly offset by export growth and acceleration of non-residential investment. In the fourth quarter, imports increased less than in the third quarter. "" Data-reagid = "19"> "In the fourth quarter, the slowdown in real GDP growth reflects a slowdown in private equity, PCE and federal government spending in government and local government spending," he wrote in a statement. the growth of exports and the acceleration of non-residential investment. In the fourth quarter, imports increased less than in the third quarter. "

Personal consumption increased by 2.8% in Q4, 3% higher than expected, and 3.5% in the previous quarter. The PCE price index rose 1.5% in the fourth quarter, down from 1.6% earlier. With the exception of food and energy prices, the basic PCE price index rose by 1.7% compared to the expected 1.6% increase.

Non-residential investment, which is the proxy for corporate spending, grew by 6.2% from 2.5% in the third quarter. This figure was still strong, even though structural investments fell by 4.2% or the biggest decline from Q3 2017.

The 3.9% increase in investments – compared to 1.1% in the third quarter – is due to R&D spending. In the fourth quarter, R&D expenditures amounted to $ 425 billion, an increase of 9.9% over the same period last year.

"Private R&D spending currently accounts for 2.3% of US GDP, a record of all times," wrote Neil Dutta, economic manager at Renaissance Macro Research. “R&D spending is usually a good sign of future productivity growth. If secular stagnation is one thing, US companies are fighting like hell to avoid.

Typically, BEA prints three prints for gross domestic product each quarter. However, Thursday's results are instead of the first two estimates of fourth quarter GDP as the first print delay is due to a 35-day partial government shutdown.

Prolonged disconnection had an impact on the release of key data factoring to the final gross domestic product. The data that came to the December peak in the last few weeks, but the fourth quarter saw a stormy picture of the US economy.

While the economy grew strongly at the beginning of 2018, a number of economic data slowed down at the end of the year, including tighter monetary policy environment and financial market turmoil.

canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Although the stock market cannot be confused with the wider economy, Recent economic data, which are largely in the reading of GDP, pointed to the weakening of many key economic areas at the end of 2018, especially in housing and processing.biggest decreasein December 2009 since September 2009 Although the stock market cannot be confused with the broader economy as a whole, recent economic data, most of which are due to GDP reading, have proved to be adequate. In the area of ​​processing, retail expenditure has also been a central problem based on Census Bureau data, which has shown the largest decline in retail sales since December 2009.

However, these concerns did not prove to be too much of a pull on GDP.

"Although this is lower than what we have seen in the last two quarters is still solid compared to recent years – it expects significant sums of money that can help in the rally so far this year," said Mike Loewengart, E-Trade Financial Corporation Investment Strategy Chairman said in an email. "It is also a big sign that the slowdown in global growth has not yet come home in the US. This means that it is a lot of economic sign, and the forecast of the flourishing economy in the market surveillance chorus is slowing down. vigilant."

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a Yahoo Finance reporter. Follow him on Twitter: @emily_mcck"data-reactid =" 31 ">Emily McCormick is a Yahoo Finance reporter. Follow him on Twitter: @emily_mcck

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance Twitter. Facebook. Instagram. Flipboard. LinkedInand reddit."data-reactid =" 32 ">Follow Yahoo Finance Twitter. Facebook. Instagram. Flipboard. LinkedInand reddit.

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For more information: Emily:"data-reactid =" 33 ">For more information: Emily:

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wall Street strategists forecast S & amp; P 500 in 2019"data-reactionsid =" 34 "> What kind of predictions does Wall Street strategy plan for S&P 500 in 2019

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Beer sales are lukewarm and the pot may be part of the problem"data-reactionid =" 35 "> Beer sales are lukewarm and the pot may be part of the problem

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The consumer sentiment has been at its lowest since Trump's election"data-reactionid =" 36 "> Consumer Trump has been at the lowest level since her choice

<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Netflix's revenue disappears and shares the dip"data-reactionid =" 37 "> Netflix revenue disappears, sharing the dip

Source link