Consumers main engine of US growth in Dec quarter

26 January 2023

 

Summary: US GDP up 0.7% (2.9% annualised) in December quarter, above expectations; consumer spending main engine of growth but momentum slows; GDP price deflator rate falls from 7.1% to 6.3%. US GDP growth slowed in the second quarter of 2019 before stabilising at about 0.5% per quarter.  At the same time, US bond yields suggested future growth rates would be below trend. The US Fed agreed and it reduced its...

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