• 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.

For further analysis download the full report.

• US Economic Update, 2015 Q4 GDP (PDF, 98kb)