Monday, January 31, 2011

Forex news market:U.S. gross domestic product did not meet market expectations

While the U.S. gross domestic product did not meet market expectations for growth at a rate of 3.5% and showed only 3.2% compared with the previous quarter on an annualized basis, the report itself contains mixed data - both favorable and not. First, as we mentioned above, consumption grew by 4,4%. This, undoubtedly, the highest growth rate in this cycle recovery / recovery, which at full two percentage points higher than the previous best indicator of 2,4% recorded in the third quarter of 2010. Great contribution made durable goods, which increased by 21,6%. Also had great support net exports is mainly due to 13.6-percent decline in imports, which, in turn, was due to strong growth in the corresponding price deflator. Stocks have had a major negative impact on GDP of 3.7%.

Taking into account the rapid growth of the deflator of import prices, it seems surprising why the overall price index of GDP in the fourth quarter, according to estimates, fell to 0.3% compared to 2,1% in the previous quarter. It will be very interesting to see whether there will be a price index for the same low level in the upcoming revision.

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