US Q4 GDP second reading +2.3% vs +2.3% expected

All growth numbers are quarter-over-quarter annualized:

• Advance Q4 GDP reading was +2.3%
• Q3 GDP was +2.8%
• Final sales +3.2vs +3.2% advance
• Consumer spending +4.2% vs +4.2% advance

Inflation numbers:

• GDP deflator +2.4% vs +2.2% expected
• Core PCE +2.7%vs +2.5% expected
• PCE prices prelim +2.4% vs +2.3% advance
• PCE service excluding energy and housing +3.5% vs +3.3% in Q3

Contributors and subtractors:

• Consumption: +2.79% vs +2.82% advance
• Government: +0.49% vs +0.42% advance
• Net International trade: +0.12% vs +0.04% advance
• Inventories: -0.81% vs -0.93% advance

There are usually some decent revisions in the second reading but there isn’t much here to mull over. The one thing that stands out is higher inflation data, even when excluding energy and housing.

This article was written by Adam Button at www.forexlive.com.