USD: US Q4 GDP Revised Down to 3.2%
US Q4 GDP Growth slumped to 3.2 % from 3.3% expected and 4.9% previous reading. This data due to Private inventory spending lowered and higher of Government, Consumer spending side. US Dollar moved down after the data printed.
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The US GDP grew at an annual rate of 3.2% in Q4, according to the US Bureau of Economic Analysis second estimate on Wednesday. The initial estimate reported a 3.3% real GDP growth. The revision is mainly attributed to a decrease in private inventory investment, partially offset by increased state and local government spending and consumer spending, as explained in the BEA press release.
USD: U.S. Q4 GDP Falls Just Short at 3.2%
US Q4 GDP Growth slumped to 3.2 % from 3.3% expected and 4.9% previous reading. This data due to Private inventory spending lowered and higher of Government, Consumer spending side. US Dollar moved down after the data printed.
U.S. Q4 GDP Growth Below Expectations at 3.2%
The U.S. economy’s fourth-quarter 2023 growth fell slightly short of expectations, with real GDP increasing at an annual rate of 3.2%, as per the Bureau of Economic Analysis’ second estimate. This figure is slightly below the anticipated 3.3% increase and represents a deceleration from the third quarter’s 4.9% expansion.
Factors Driving Economic Growth
Contributors to this quarter’s growth included robust consumer spending, increased exports, and heightened state and local government spending. Both residential and nonresidential fixed investments also showed positive trends. However, a notable downturn in private inventory investment partially offset these advances.
Sectoral Shifts and Revisions
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The GDP’s composition this quarter revealed shifts, with a downturn in private inventory investment and slowdowns in federal government spending, residential fixed investment, and consumer spending compared to the third quarter. The second estimate also included upward revisions in consumer and government spending.
Economic Indicators and Personal Income
In current dollar terms, GDP increased by 4.9% or $334.5 billion in the fourth quarter, reaching $27.94 trillion. Personal income trends displayed interesting dynamics, with a notable increase in disposable personal income, albeit slightly revised downward from previous estimates.
Short-Term Market Outlook
With a solid GDP growth rate close to expectations and positive momentum in consumer spending and government expenditure, the short-term outlook for the U.S. market appears moderately bullish. The economy’s resilience, despite a slowdown in private inventory investment, suggests underlying strength. Traders should closely monitor upcoming economic data for more definitive signals of sustained growth momentum.
USD: GDP Q4 & 2023 (2nd Estimate)
US Q4 GDP Growth slumped to 3.2 % from 3.3% expected and 4.9% previous reading. This data due to Private inventory spending lowered and higher of Government, Consumer spending side. US Dollar moved down after the data printed.
Real GDP in Q4 2023 Grows at 3.2%, Slightly Below Initial Estimate
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The Bureau of Economic Analysis’ second estimate reveals that the annual growth rate of the United States’ Gross Domestic Product (GDP) for Q4 2023 was 3.2%, slightly lower than the initial estimate of 3.3%. The revision is mainly attributed to a downward adjustment in private inventory investment, offset in part by upward revisions to state and local government spending and consumer spending.
Key Contributors to Q4 Growth:
– Robust consumer spending
– Increased exports
– Heightened state and local government spending
– Positive trends in both residential and nonresidential fixed investments
– Federal government spending also contributed
Factors Leading to Deceleration:
The deceleration in real GDP growth in Q4 compared to Q3 was primarily due to a downturn in private inventory investment and slowdowns in federal government spending, residential fixed investment, and consumer spending.
Current-Dollar GDP and Price Index:
– Current-dollar GDP increased by 4.9%, reaching $27.94 trillion in Q4.
– The price index for gross domestic purchases increased 1.9% in Q4.
Personal Income and Saving:
– Current-dollar personal income increased by $219.5 billion in Q4.
– Disposable personal income increased by $202.5 billion, or 4.0%, in Q4.
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– Personal saving was $809.2 billion, with a rate of 3.9% of disposable personal income.
Updates to GDP Estimates:
Downward revisions to private inventory investment and federal government spending were partially offset by upward revisions to various components, including state and local government spending, consumer spending, and fixed investments.
Revised Estimates for Third Quarter:
Revised estimates for the third quarter show increases in wages and salaries, personal taxes, and contributions for government social insurance.
GDP for 2023:
Real GDP increased by 2.5% in 2023, reflecting growth in consumer spending, nonresidential fixed investment, and government spending, offset by decreases in residential fixed investment and private inventory investment.
Price Index for Gross Domestic Purchases:
The price index for gross domestic purchases increased by 3.4% in 2023, compared with 6.8% in 2022.
Comparison Over Time:
Measured from Q4 2022 to Q4 2023, real GDP increased by 3.1%, compared to an increase of 0.7% from Q4 2021 to Q4 2022. Price indices also showed variations over these periods.
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