MercoPress. South Atlantic News Agency
US growth slows down sharply to 0.7% annually in the fourth quarter
GDP increased at a 0.7% annual rate, the Commerce Department said as lower oil prices continued to undermine investment by energy firms As anticipated by the Federal Reserve's report earlier this week, US economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.
GDP increased at a 0.7% annual rate, the Commerce Department said on Friday, as lower oil prices continued to undermine investment by energy firms and unseasonably mild weather cut into consumer spending on utilities and apparel.
The growth pace was in line with economists' expectations and followed a 2% rate in the third quarter. The economy grew 2.4% in 2015 after a similar expansion in 2014.
But some of the impediments to growth - inventories and mild temperatures - are temporary and the economy is expected to snap back in the first quarter. Excluding inventories and trade, the US economy grew at a 1.6% pace.
Nevertheless, the GDP report could spark a fresh wave of selling on the stock market, which has been roiled by fears of anemic growth in both the United States and China.
The Federal Reserve on Wednesday acknowledged that growth “slowed late last year,” but also noted that “labor market conditions improved further.” The Fed, the US central bank, raised interest rates in December for the first time since June 2006. Though the Fed has not ruled out another hike in March, financial markets volatility could see that delayed until June.
Top Comments
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Read all commentsThe US does not grow ... swell.
Jan 30th, 2016 - 12:49 pm 0And only manage to stay standing because the dollar still monopolizes trade and global savings. They print dollars and the world purchase.
The Bank of BRICS will change that!
No tobi, you continue in your failures to understand. It does not collapse like the brics because it does not have all their eggs in one basket. Your wishing will never be seen in your lifetime. China will continue its downward spiral and that sucking sound ( Ross) you hear in China's exhaust is the rest of the brics.
Jan 30th, 2016 - 01:25 pm 0China's been unloading US bonds for some time now trying to keep the yuan afloat with no impact on the USA. And as long as the USA remains their largest trading partner they will always buy dollars. Remember tobi, in the top 10, Brazil barely makes number 9 as a trading partner with China, they really tie at 10 with Mother Russian.
Speaking of Russia, I saw a group of 12 tourist in a restaurant the other night. They are totally rude, classless drunks. It was funny watching them stand with drinks saluting the fatherland. I thought that was tv crap....lol.
Brazil is shrinking. So the US is at least growing.
Jan 30th, 2016 - 01:31 pm 0The BRICS? Bahahaha
Russia is in huge trouble. So is Brazil. So is South Africa. So is China.
That leaves India..... and even it is hardly setting the world on fire with its economy.
Play with your bank. No one cares because the BRICS era is over already. Quicker than a teenage boy with a five buck hooker.
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