Saturday 27 February 2016

The US economy surpassed forecasts

The US economy presented a pleasant surprise to analysts on Friday. The data on the growth of gross domestic product in the last quarter of 2015 was revised from 0.7% to 1% in expected correction downwards to 0.4 percent.

The value of stocks increased by $81.7 bln. during the period, instead of the previously calculated 68.6 billion.

However the consumer spending slow its growth to the spring and fall to 2% transient estimates of 2.2%. Investments in equipment decreased by 1.8%, while investment in non-residential buildings are down by 6.6%.

The trade balance takes 0.25 percentage points from economic growth rather than calculated earlier 0.47 points, as exports shrank more sharply, by 2.7% instead of 2.5%, but imports fell by 0.6% in the previous estimate of growth of 1.1 percent.

According to analysts, Friday's report may not be as good news as it seems at first sight. Higher volume stocks could force businesses reduce the pace of production at the beginning of 2015. Separately, it is possible that the data are a sign that companies are facing problems to sell their products.


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