US GDP Revised Downward to 0.5% in Q4, Investment a Weigh
United States real Gross Domestic Product (GDP) grew at an annualized rate of 0.5% in the fourth quarter, according to the third estimate released by the US Bureau of Economic Analysis (BEA), released Thursday. This figure was lower than the 0.7% increase in the previous estimate and also below market expectations of 0.7%.
The BEA stated that the 0.2 percentage point downward revision primarily reflected a downward revision in investment. However, the fourth-quarter GDP increase was still supported by consumer spending and investment, while these contributions were partially offset by declines in government spending and exports. Imports declined, which are a net loss in GDP calculations, providing mechanical support to the growth figure.
This revision confirms that year-end growth was slower than previously expected, highlighting the resilience of domestic demand versus the weakening of some external and government components. For the market, this reading could influence assessments of economic momentum and the sensitivity of future monetary policy, especially if the investment slowdown persists. (gn)
Source: Newsmaker.id
