Fourth quarter gross domestic product was the best in a year and a half, but the economy’s gains look to be short-lived and the first quarter could be slightly more sluggish than expected.
The fourth quarter’s 2.8 percent growth rate was short of the 3 percent expected by economists but better than the third quarter’s 1.8 percent pace.
The report, however, showed surprising weakness in several key areas and comes in the same week that the Federal Reserve shaved its own growth forecasts and signaled it will keep rates low for nearly three years.
“We still had the best growth in a year and a half, but it’s really the devil in the details,” said Jonathan Basile, Credit Suisse economist. “Final sales slowed more than we thought. The inventory was pretty much in line but within the detail…the private sector didn’t [Read full story...]
Follow Us!