US Q4 GDP up 2.2% and falls below expectations
Despite a rise in the US Q4 GDP, the economy's growth was worse-than-expected.
Right-click and edit to add details.
The final reading of the US Q4 gross domestic product (GDP) from the US Commerce Department shows that the GDP grew 2.2%. The statistic is less than the 2.9% expected from financial experts.
US Q4 GDP: key figures
| Residential investment | -4.7% |
| Business fixed investment | +5.4 % |
| Exports | +1.8% |
| Imports | +2% |
While the first reading of the US Q4 GDP showed improvement, the third and final revision from the Commerce Department shows that the US economy is experiencing a slight slowdown. Business fixed investment fell to 3.1% from 3.9%. Consumer spending was also revised down in the final report to 2.5% from 2.8%. Residential investment plummeted by 4.7% as the US housing market struggles. Exports increased as the trade deficit is narrowing in 2019. Imports grew as well, but had to be revised down in the wake of current US-China trade concerns.
How will the US Q4 GDP affect the economy?
Bob Iaccino, founder of Path Trading Partners, said that the final reading of the US Q4 GDP doesn’t mean that the nation is going to experience a recession and said the word ‘shouldn’t be used flippantly.’ However, he feels that the economy is definitely having a 'slowdown, no question.’
‘The latest revision of the GDP is decidedly weak,’ added Iaccino.
Iaccino also noted that if Q1 2019 GDP growth slows, it will be hard to get to 3% growth for the economy. He also said that the lower-than-expected GDP statistics would affect US President, Donald Trump, who has been touting the success of the US economy.
‘Trump wanted 3% growth from [GDP statistics,]’ said Iaccino.
Iaccino also believes that even with the rise of the GDP and possibly positive US-China trade talks, it would take two quarters for those results to increase economic growth.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
