US GDP for Q4 2015 came out at 1.4% according to the final read. Personal consumption is up to 2.4% annualized instead of 2% reported beforehand. Business investment is down -2.1% instead of -1.9% reported in the second read. Mixed components but the headline figure is positive.
The US dollar is slightly stronger but markets are a bit sleepy on Good Friday.
Good Friday Trading
The third and so called “final” release of US Gross Domestic Product for Q4 2015 was expected to confirm the second read showing an annualized growth rate of 1%, a very mediocre level by all accounts. The GDP Deflator was expected to slide from 1% to 0.9% and the Core PCE Price to be confirmed at 1.3%.
Trading was quite subdued all over the world as most countries are off the Good Friday holiday. In some cases, a strong figure coming on thin liquidity results in sharp and unpredictable moves.
Better Growth in 2016?
Expectations are for better growth in Q1 2016, but yesterday’s not really convincing durable goods orders lowered expectations. The US, as well as other developed economies, is suffering the “New Mediocre”.
Earlier in the week, the hawks in the Fed suddenly showed up. Talk about a hike in April surprised markets in light of the extremely dovish Fed decision last week. We will get clarifications from Fed Chair Janet Yellen on Tuesday, March 29th, right after the long weekend.