Rolling coverage of the latest economic and financial news, as worries of a global slowdown spook investors
- Latest: US economy growing slower than thought
- Turkish president hits out over lira crisis
- Eurozone confidence weakens again
- Introduction: Falling bond yields show growth worries are building
Here’s some instant reaction to the US GDP report.
Marketwatch’s Jeffry Bartash highlights why growth has been revised lower:
U.S. 4th-quarter GDP cut to 2.2% from 2.6%, but increase in 2018 left at 2.9%. Consumer spending and biz investment marked down and drop in state & local spending deeper than originally reported. Adjusted pretax corporate profits fall 0.4% – first decline in 7 quarters.
Downward revision on 4Q GDP +2.2% missed expectations but only by a hair. Real final sales +2.1% is right near post-GFC trend.
Anyone who tells you this number is “terrible!” is either thrashing a bearish mkt thesis or politicizing. It’s right on trend. pic.twitter.com/mKSvrOePPy
Newsflash: America’s economy grew more slowly than previously thought in the last three months of 2018.
Newly revised data shows that US GDP only expanded at an annualised rate of 2.2% in October-December. That’s down from a previous estimate of 2.6%, and slower than the 3.4% annualised growth recorded in the third quarter of 2018.
US GDP (Q4 T) +2.2% versus +2.4% expected, previous +2.6% $USD $DXY
