FYI; After a blow-out revised reading on Q3 GDP (5.0% quarter-over-quarter real growth at a seasonally adjusted annual rate), the market and economists were much more circumspect in their expectations for Q4. Going in to the report, Wall Street's consensus was for 3.0% growth and the Atlanta Federal Reserve's GDPNow estimate was calling for 3.5% growth, but both proved to be overly optimistic as the report came in at 2.6% QoQ SAAR. Investment added much less to growth in Q4 than it had of late, while a collapse in government spending at the federal level (primarily defense outlays) kneecapped the fiscal contribution to growth. Imports also exploded higher as the stronger USD fueled purchases of goods from overseas. The bottom line for growth: the consumer is looking stronger, government and trade held back the economy this quarter, and investment slowed somewhat, driven by slower purchases of equipment.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2015/1/30/q4-2014-gdp-misses-with-consumer-surging.html?printerFriendly=true
