US Q4 GDP up 2.2% and falls below expectations
Despite a rise in the US Q4 GDP, the economy's growth was worse-than-expected.
Right-click and edit to add details.
The final reading of the US Q4 gross domestic product (GDP) from the US Commerce Department shows that the GDP grew 2.2%. The statistic is less than the 2.9% expected from financial experts.
US Q4 GDP: key figures
| Residential investment | -4.7% |
| Business fixed investment | +5.4 % |
| Exports | +1.8% |
| Imports | +2% |
While the first reading of the US Q4 GDP showed improvement, the third and final revision from the Commerce Department shows that the US economy is experiencing a slight slowdown. Business fixed investment fell to 3.1% from 3.9%. Consumer spending was also revised down in the final report to 2.5% from 2.8%. Residential investment plummeted by 4.7% as the US housing market struggles. Exports increased as the trade deficit is narrowing in 2019. Imports grew as well, but had to be revised down in the wake of current US-China trade concerns.
How will the US Q4 GDP affect the economy?
Bob Iaccino, founder of Path Trading Partners, said that the final reading of the US Q4 GDP doesn’t mean that the nation is going to experience a recession and said the word ‘shouldn’t be used flippantly.’ However, he feels that the economy is definitely having a 'slowdown, no question.’
‘The latest revision of the GDP is decidedly weak,’ added Iaccino.
Iaccino also noted that if Q1 2019 GDP growth slows, it will be hard to get to 3% growth for the economy. He also said that the lower-than-expected GDP statistics would affect US President, Donald Trump, who has been touting the success of the US economy.
‘Trump wanted 3% growth from [GDP statistics,]’ said Iaccino.
Iaccino also believes that even with the rise of the GDP and possibly positive US-China trade talks, it would take two quarters for those results to increase economic growth.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
