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Can U.S. GDP Stop the Stock Slide? - Real Time Insight

We got the Q4 GDP report this morn. Largely meeting expectations, real GDP increased +3.2% in annual terms in Q4. Beware, this is the "advance" estimate. The "second" Q4 estimate arrives Feb. 28th. In Q3, real GDP increased +4.1%. Positives: - Personal Consumption (a very good thing for stocks), - Exports (a good thing), - Nonresidential fixed investment (healthy businesses), - Private inventory investment (stores stocking up), and - State and local government spending (telegraphs healthy sales taxes). Negatives: - Federal government spending (the sequester) and - Residential fixed investment (truly not a good thing). - Imports, which subtract in calculating GDP, increased (in sync with personal consumption). Deceleration from the +4.1 Q4 GDP number to a +3.2% Q3 number reflected a lower inventory number, lower federal gov't spending (the sequester), and lower home investing. Big news, as far as I was concerned, was the Q3 uptick of +3.3% in consumption and +11.4% in exports. My RTI question: Will U.S. GDP Numbers Stop the Stock Market Slide?

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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