Fourth quarter GDP could show economy entered a slower growth patch at year-end
Added 01-30-20 06:01:07am EST - “Economic growth in the final quarter of the year is expected to be on par with third quarter's 2.1%, but it is also likely to herald the start of a slower trend that could continue through the first half of this year.” - Cnbc.com
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Economic growth in the final quarter of the year is expected to be on par with the third quarter's 2.1%, but it is also likely to herald the start of a slower trend that could continue through the first half of this year.
Fourth quarter growth is expected to have been 2.1%, according to Dow Jones. But there's a wide range of forecasts for the first reading — from 1.4% at JPMorgan to 2.5% by Amherst Pierpont.
Markets turn their focus to gross domestic product data, expected at 8:30 a.m. ET Thursday, after the Federal Reserve's meeting on Wednesday provided little new insight into Fed rate policy. The Fed did make it clear that it sees a more moderate consumer, which should show up in the softer consumption number in GDP.
On Wednesday, the Commerce Department reported that the U.S. goods trade deficit rose sharply in December as imports rebounded and businesses were more wary about accumulating inventory. The goods trade gap, which has fallen for three straight months due to declining imports, surged 8.5% to $68.3 billion last month.
That prompted some economists to trim fourth quarter growth forecasts. Goldman Sachs economists, for instance, sliced their forecast for growth by one tenth to 1.8%.
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