US Q4 GDP misses expectations on lack of inventory building

30 January 2025

 

Summary: US GDP up 0.6% (2.3% annualised) in December quarter, below expectations; up 2.5% over year; Westpac: downside surprise due to pullback in inventory accumulation; US Treasury yields decline; rate-cut expectations barely move; GDP price deflator rate accelerates from 2.3% to 2.4%. 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...

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