This morning’s Q4 GDP report was a headline miss (2.6% versus an expected reading of 3.2%), mostly explained by the inability of strong consumer spending to overcome investment malaise. Bank of America Merrill Lynch’s economists break it down thusly:
Consumer comeback, slower investment
Consumer spending surged 4.3% qoq saar, which was the largest increase since 1Q 2006, and contributed 2.9pp to GDP growth. Goods spending contributed 1.2pp to growth, with durables adding 0.5pp and nondurables adding 0.7pp. Growth in services consumption was a bigger driver, adding 1.7pp. Within services, healthcare spending contributed 0.5pp for the third straight quarter, and was the largest of any major subcategory. This likely reflects the expansion of health insurance coverage from the implementation of the ACA.
The news on the investment side was mixed. There was a significant pickup in inventories to $113.1bn from $82.2, which contributed 0.8pp to GDP growth. However, we think this was largely unintentional and should result in a drawdown in 1Q. Fixed investment growth slowed to 2.3% qoq saar from 7.7% in 3Q, adding only 0.4pp to GDP. The weakness was concentrated in equipment spending which dropped 1.9%—this could be a bit of a payback after strong 11%+ growth in 2Q and 3Q. That said, core capital goods orders continued to contract in December, suggesting further decline heading into 1Q 2015. Residential investment provided a small offset to these data, growing 4.1% qoq saar in 4Q versus 3.3% in the prior quarter.
Source:
The consumer stands above it all
Bank of America Merrill Lynch – January 30th 2015
Malaysian Hair Wholesale
[…]we prefer to honor quite a few other online web pages around the web, even if they arent linked to us, by linking to them. Beneath are some webpages really worth checking out[…]
Virgin Hair Wholesale
[…]we prefer to honor several other online sites on the net, even if they arent linked to us, by linking to them. Beneath are some webpages really worth checking out[…]
ganadora
[…]The details talked about inside the report are several of the very best obtainable […]
tratamiento adicciones
[…]one of our guests not too long ago recommended the following website[…]
ผ้าญี่ปุ่นสำเพ็ง
????????????? ??????????????????? ????????????? ?????????????????????????????????????
hackers for hire
[…]please pay a visit to the websites we follow, including this a single, as it represents our picks from the web[…]
piala dunia 2018
[…]very handful of websites that occur to be in depth beneath, from our point of view are undoubtedly well really worth checking out[…]
Soldier deployment boots
[…]that will be the finish of this report. Here you will locate some web-sites that we believe youll appreciate, just click the hyperlinks over[…]
adamandeve.com
[…]Every when in a though we pick blogs that we study. Listed below are the latest web pages that we select […]
Anal Butt Beads
[…]here are some hyperlinks to web sites that we link to since we consider they may be really worth visiting[…]
Kegel Exerciser
[…]check beneath, are some completely unrelated sites to ours, on the other hand, they’re most trustworthy sources that we use[…]
mini bullet vibrator
[…]Sites of interest we have a link to[…]
china international shipping
[…]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless genuinely worth taking a search, whoa did one discover about Mid East has got more problerms too […]
kona coffee
100% Kona Coffee Beans fancy roasted by LION have been enjoyed by coffee aficionados for well over 100 years.
geodesic dome tent kit
[…]although web-sites we backlink to beneath are considerably not connected to ours, we feel they are in fact really worth a go via, so possess a look[…]