- US economy grew by 4.3% in the fourth quarter.
- US Dollar Index stays in the positive territory above 92.60.
The United States’ Real Gross Domestic Product (GDP) expanded at an annual rate of 4.3% in the fourth quarter, the US Bureau of Economic Analysis reported on Thursday. This reading came in better than the previous estimate and market expectation of 4.1%.
Market reaction
The initial market reaction to this report was largely muted and the US Dollar Index was last seen gaining 0.15% on the day at 92.67.
Additional takeaways
“The upward revision primarily reflected an upward revision to private inventory investment that was partly offset by a downward revision to nonresidential fixed investment.”
“The increase in real GDP reflected increases in exports, nonresidential fixed investment, personal consumption expenditures (PCE), residential fixed investment, and private inventory investment, that were partly offset by decreases in state and local government spending as well as federal government spending (reflecting fewer fees paid to administer the Paycheck Protection Program loans).”
“Imports, which are a subtraction in the calculation of GDP, increased.”
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