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.
- 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: