GDP was surprisingly hot on the announcement today, coming in at5.7% vs the expected 4.7%. We heard some whispers that Goldman (GS) had been predicting a high number last week and by golly they were right!
Immediately the dollar gained ground and the markets shot up…. for a moment. There is still a great deal of concern surrounding Greece and Iceland along with a rate hike that will be on the heels of this report.
4th Quarter GDP was announced:
* Q4 GDP Q/Q- advance +5.7% vs +4.7% consensus, Q3 +2.2%
* Q4 Personal Consumption- advance +2.0% vs +1.8% consensus, Q3 +2.8%
* Q4 Core PCE Q/Q- advance +1.4% vs +1.3% consensus, Q3 +1.2%
* Q4 GDP Price Index- advance +0.6% vs +1.3% consensus, Q3 +0.4%
* Q4 Employment Cost Index +0.5% vs +0.4% consensus, Q3 +0.4%
* Inventories accounted for +3.4% of US GDP
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