{"id":245952,"date":"2010-01-29T09:31:41","date_gmt":"2010-01-29T14:31:41","guid":{"rendered":"http:\/\/blogs.reuters.com\/james-pethokoukis\/?p=3309"},"modified":"2010-01-29T09:31:41","modified_gmt":"2010-01-29T14:31:41","slug":"5-7-percent-4q-gdp-growth-%e2%80%a6-then-a-slowdown","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/245952","title":{"rendered":"5.7 percent 4Q GDP growth \u2026 then a slowdown"},"content":{"rendered":"<p>Or so says RDQ Economics:<\/p>\n<blockquote>\n<p><span style=\"font-size: 10pt; color: black;\">The recovery from the Great Recession firmed in the fourth quarter as real GDP increased at its fastest rate since the third quarter of 2003.\u00a0 However, also as expected, a sharp slowing in inventory liquidation accounted for 3.4 percentage points (or 60%) of the 5.7% increase in real GDP.\u00a0 We are particularly impressed by the 13.3% increase in nonresidential investment (upside risk in this area was flagged by yesterday\u2019s durable goods report). <\/span><\/p>\n<p><span style=\"font-size: 10pt; color: black;\">We were also pleased that none of the growth came from government spending, which fell by 0.2%.\u00a0 From the Fed\u2019s perspective, however, this report does not bring a rate hike closer.\u00a0 First, the unemployment rate rose from 9.6% in the third quarter to 10.0% in the fourth (raising upside risk to the estimates for potential growth).\u00a0 Second, the GDP deflator increased by only 0.6% (although, perhaps counter-intuitively, this modest gain was due to the subtraction effect of higher import prices, which surged 16.3%\u2014the price index for domestic purchases rose 2.1% in the fourth quarter, which is a measure of what people and businesses paid, whereas the GDP price index measures the price of what the U.S. produced). <\/span><\/p>\n<p><span style=\"font-size: 10pt; color: black;\">Nominal GDP growth was a robust 6.4% in the quarter (and 0.8% year-over-year).\u00a0 As the addition to growth from inventories fades somewhat, we see growth in the first quarter of 2010 at around 2\u00bd%<\/span><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Or so says RDQ Economics: The recovery from the Great Recession firmed in the fourth quarter as real GDP increased at its fastest rate since the third quarter of 2003.\u00a0 However, also as expected, a sharp slowing in inventory liquidation accounted for 3.4 percentage points (or 60%) of the 5.7% increase in real GDP.\u00a0 We [&hellip;]<\/p>\n","protected":false},"author":1063,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-245952","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/245952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1063"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=245952"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/245952\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=245952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=245952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=245952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}