United States Economic Growth Lower than Expected in Late 2016
The reported 1.9% increase was a modest increase, falling short of consensus expectations in the 4th Quarter of 2016.
The Index
The U.S. Bureau of Economic Analysis reports the crucial Gross Domestic Product (GDP) quarterly. The term “economic growth” often refers directly to this number. The number itself is an aggregate measure of the market value of all final goods and services produced in a period- either quarterly or yearly 1.
The number itself- including all of the private and public consumption and production in a country’s borders- is used a both a measure of relative economic health compared to other nations and as an indication of standard of living. For economists, traders, and investors, the percentage increase in GDP has become the real focus of attention when the numbers are reported. When the percentage is negative, it indicates economic contraction and is part of how economists determine whether an economy is in recession.
By the Numbers
The United States Bureau of Economic Analysis reported today that GDP grew from 18,675.3 to 18,860.8 from the 3rd to 4th Quarter of 2016. They reported that the economy grew 1.9% at an annual rate.
According to Wall St. Journal, economists had forecast a growth rate of 2.1% 2. This led to disappointment in the investing world, as expectations shape investing activity between quarterly reports of this kind. Marketwatch reported that since this is Former President Obama’s last full quarter, he will not have achieved a 3% growth in his presidency 3. Moreover, it’s been 11 years since the US last achieved 3% or greater GDP growth.
GDP Growth Rate
Disclaimer
This information is solely a representation of publicly available facts intended for educational use only. This is not a solicitation to buy or sell any public or private Security, in any city named in the article or elsewhere. The US Gross Domestic Product should not be used a market timing tool for buying or selling any security. All data obtained from the U.S. Bureau of Economic Analysis, Wall St. Journal, Marketwatch, and Investopedia.