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US GDP Expanded Stonger Than Expected |
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Special Reports |
Written by ActionForex.com |
Jan 29 10 14:11 GMT |
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US GDP Expanded Stonger Than Expected
4Q09 GDP expanded +5.7% qoq (annualized) , compared with market expectation of +4.7%, from +2.25 in the previous quarter. The growth was the strongest since 3Q03 and was mainly driven by inventories which contributed 3.4% to the headline gain. It's a good news that inventory declined at a significantly lower than last quarter, rather than outright accumulation.
Final sales (GDP excluding inventory) grew +2.2% with business equipment spending surging a lucrative +13.3% at an annual rate.
Other components showed mixed performance. For instance, personal consumption rose +2% from +2.8% in 3Q09. The cash-for-clunkers program brought some durable goods orders to 3Q09 from 4Q09. Government spending dropped -0.2% in spite of the stimulus program while residential investment rose less than market anticipated (+5.7% ).
The robust growth seen in 4Q09 indicates US economic recovery is underway. We expect further growth in 1Q09 and a substantial share will continue to be contributed by inventory
| US GDP |
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| %, qoq, annualised |
3Q09 |
4Q09 |
| Real GDP (chain-weighed) |
2.2 |
5.7 |
| Final sales |
1.5 |
2.2 |
| Final Domestic Demand |
2.3 |
1.7 |
| Consumption |
2.8 |
2 |
| Business Investment |
-5.9 |
2.9 |
| Residential Investment |
18.9 |
5.7 |
| Change in Inventories ($) |
-139.2 |
-33.5 |
| Net Exports ($) |
-357.4 |
-341.1 |
| Government purchases |
2.6 |
-0.2 |
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