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U.S. Q4 GDP growth unrevised, missing expectations

Published 02/28/2017, 08:31 AM
© Reuters.  U.S. Q4 GDP revised to growth of 1.9% vs. 2.1% forecast
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Growth of the U.S. economy in the fourth quarter was left unrevised, missing forecasts, despite the fact that consumer spending increased more than expected, according to official data released on Tuesday.

The second estimate of fourth quarter (Q4) growth domestic product (GDP) showed growth of 1.9%, unchanged from the initial reading.

Analysts were looking for an upward revision to 2.1%.

For all of 2016, growth was just 1.6%, its worst reading since 2011 and far below the 2.6% registered in 2015.

Real consumer spending for the October to December period rose by 3.0%, compared to the initial 2.5% increase.

Economists weren’t expecting any change.

The GDP price index was unexpectedly revised down to an increase of 2.0%, from the prior reading of a 2.1% advance.

Analysts had forecast no change to the first estimate.

The core PCE price index was revised down to show a gain of 1.2%, from the previously reported 1.3% advance.

Business investment increased by only 1.3%, down from the flash estimate of a 2.4% gain.

Immediately after the report, EUR/USD was trading at 1.0599 from around 1.0598 ahead of the publication; GBP/USD was at 1.2428 from 1.2424 earlier; while USD/JPY was at 112.09 from 112.14 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 101.00 compared to 101.01 prior to the release.

Meanwhile, U.S. stock futures pointed to a slightly lower open. The Dow futures lost 23 points, or 0.11%, the S&P 500 futures fell 3 points, or 0.11%, while the Nasdaq 100 futures slipped 2 points, or 0.04%.

Elsewhere, in the commodities market, gold futures traded at $1,256.15 a troy ounce, compared to $1,255.00 ahead of the data, while crude oil traded at $53.67 a barrel from $53.71 earlier.

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