Growth, inflation and labour market all easing
US GDP growth slowed sharply in the March quarter. This, at least in part, reflected the harsh winter and also a correction to the strong growth seen in the second half of 2013 as inventory accumulation slowed and net export gains were reversed.
US GDP growth slowed sharply in the March quarter, with growth of only 0.1% qoq (annualised rate). Several factors appear to be at play. These include a correction to strong growth in the second half of the year as inventory accumulation slowed and the strong December quarter net export performance was unwound. Equipment investment also declined after spiking towards the end of 2013. A harsh winter also likely had an impact although it is difficult to quantify, particularly given that strong power consumption provides an offset.
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