U.S. GDP Grew By +2.8% in Q4, Below Analysts Expectations
January 27, 2012
Economic Update: U.S. GDP
The government’s advance report on the nation’s fourth quarter GDP shows the economy grew at a rate of +2.8% during the October-December period.
This was below the estimates for a growth rate of +3.1% but still above the third quarter’s growth rate of +1.8%. Wall Street’s expectations had been for this report to be above 3%
For reference purposes: Q3: +1.8%, Q2: +1.3%, Q1: +0.4%, Q4 2010: +3.1%, Q3 +2.6%, Q2: +1.7% and Q1 2010 was +3.7%.
On the inflation front, the Price Deflator came in at +0.4% vs. expectations for +1.4% and the last report’s +2.6%
On the consumption side, the index was up +2.0%, which was above the last look of 1.7%.
Final Sales increased by +0.8%, which was well below the consensus for +2.5% and last quarter’s +3.2%
As expected, stock futures have pulled back on the news.
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