US Economic Update – US GDP 2012 Q4

US GDP fell by 0.1% (annualized rate) in the December quarter following quite solid growth in the previous quarter. Underlying trend is modest growth. The quarterly decline reflects a big drop in federal defence spending and slower inventory growth as well as a decline in net exports.

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  • US GDP fell by 0.1% (annualized rate) in the December quarter following quite solid growth in the previous quarter. Underlying trend is modest growth.
  • The quarterly decline reflects a big drop in federal defence spending and slower inventory growth as well as a decline in net exports.  Consumption, business investment and housing investment all strengthened in the quarter.
  • We expect GDP will grow by 2.2% in 2013 (previously 2.4%) and 2.9% in 2014. The revision down in 2013 reflects “base” effects from the December quarter 2012 outcome.

 

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