US Economic Update – GDP Q4 2015

U.S. GDP growth slowed in the December quarter to 0.2% qoq (0.7% annualised).

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  • U.S. GDP growth slowed in the December quarter to 0.2% qoq (0.7% annualised).
  • Most components slowed or stayed weak. The main detractors from growth were inventories and net exports. US dollar appreciation and falling energy prices are weighing heavily on some sectors.
  • Despite these headwinds, over the last year domestic final demand has held up, and the economy is expected to growth at a moderate pace. We expect GDP growth of 2.2% in 2016 (previously 2.3%) and 2.3% in 2017, although downside risks have increased.

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