US Economic Update – February 2015

Following two strong quarters, US GDP growth decelerated in the December quarter to a still solid 2.6% qoq (annualised). The large fall in oil prices and the rise in the dollar are producing both winners and losers. Annual labour force growth in January matched civilian population growth.

By

  • GDP growth decelerated in the December quarter to 2.6% qoq (annualised). This still represents solid growth, consistent with our outlook for above trend growth.
  • Strong recovery in the labour market continues, but still waiting for clear signs of a pick up in wages.
  • US banks have been easing lending standards, although by historical standards they still remain tight for some loan types (particularly residential mortgages).

For further details please see the attached document: