Friday, 30 January 2015

US GDP slows down in Q4 2014

As per the preliminary data released by the Bureau of Economic Analysis, the real gross domestic product (GDP) increased at an annual rate of 2.6% in Q4 2014, missing the expectation of 3.0%, and down from the Q3 growth rate of 5.00%. 

The economy witnessed positive contributions from from personal consumption, which rose 4.3%, beating the expected rise of 4.0%. Other major contributors were private inventory investment, exports. On the other hand, the growth rate was pressurized by an upturn in imports, a downturn in federal government spending, and decelerations in nonresidential fixed investment. 

Meanwhile, the GDP price index, decreased 0.3% in the fourth quarter, in contrast to an increase of 1.4 % in the third.

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