US economy grew at better 1 percent rate in fourth quarter

“Meanwhile, the chances that investment or exports rebound and offset the consumer slowdown remain slim, given the recent Brexit-related declines in business confidence and the continued uncompetitiveness of United Kingdom exports in European markets”.

Businesses stockpiled $81.7 billion worth of inventory instead of the $68.6 billion estimated in January, illustrating an upward revision to the inventory valuation adjustment.

The lackluster pace of fourth-quarter growth “overstates the slowdown that we’re seeing”, Sarah House, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. Government spending contracted at a 0.1% rate instead of rising at a 0.7% rate, today’s figures show.

Crowded warehouse shelves might not bode well for first-quarter growth: firms could cut back on production early in the year to bring inventories into line. There is also the fact that annual expansion was still well down on the 2.9 per cent in 2014, although Reuters points out last year’s figure still puts the United Kingdom near the top of the global pack.

And fourth-quarter GDP wasn’t revised higher for “good” reasons.

“Nevertheless, it still appears that first-quarter GDP growth is on track to rebound to a very healthy 2.5 per cent annualized or higher, which should dampen any concerns about an imminent recession”.

As far as housing is concerned, the market has slowed a bit but is still pressing forward, despite the dramatic decrease in GDP growth.

US stock index futures extended gains after the data, while prices of Treasuries fell. It was previously estimated to have subtracted 0.47 percentage point.

Added Williamson, “News that the USA economy showed signs of stalling in February has been swiftly followed by a confirmation of weak economic growth late later year”. All the main components of the services industries increased in December.

The existing-home sales report from the National Association of Realtors (NAR) proves that lenders are well on the path to recovery from TRID delays. 2016 could produce another year of near 2% growth, but in reality the economy will be heavily impacted by global factors, as well as domestic political issues around the June referendum. Two way trade was on the month, with exports lower by nearly 3% on the month. Private consumption grew by 1.8 per cent in the final three months of a year ago as even relatively weak wage growth boosted net incomes at a time of near-zero inflation.