US GDP expands at annual rate of 0.5% in Q4 vs 0.7% expected
- US GDP growth revised lower to 0.5% for Q4.
- US Dollar Index holds steady near 99.00.
The United States' (US) real Gross Domestic Product (GDP) expanded at an annual rate of 0.5% in the fourth quarter, the US Bureau of Economic Analysis' third estimate showed on Thursday. This print followed the 0.7% growth announced in the previous estimate and came in below the market expectation of 0.7%.
"Real GDP was revised down 0.2 percentage point from the second estimate, primarily reflecting a downward revision to investment," the BEA explained in its press release.
"The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment. These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased," the BEA further noted.
Market reaction
The US Dollar (USD) Index showed no immediate reaction to this report and was last seen fluctuating near Wednesday's closing level of 99.00.
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