The first look at fourth quarter US GDP

US Q4 advance GDP
  • Q2 was +33.4% annualized
  • Personal consumption +2.5% vs +3.1% expected
  • GDP price index +2.0% vs +2.2% expected
  • Core PCE +1.4% vs +1.2% expected

Details:

  • Ex motor vehicles +4.5%
  • Final sales +3.0%
  • Inventories added 1.04 pp to GDP
  • Business investment +13.8%
  • Business investment in equipment +24.9%
  • Exports +22.0%
  • Imports +29.5%
  • Home investment +33.5%

This report is a tad on the soft side on softer personal consumption, something we saw in the Nov/Dec retail sales numbers. Expect the market can brush that off because of additional stimulus checks delivered in December, with more likely to come.