Despite the rise in interest rates, we’ve seen over the past few months, the US economy has held up reasonably well, with strong growth in Q3 as well as Q4
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FXMAG.COM asked Michael Hewson, Chief Market Analyst at CMC Markets, for his view on the US GDP release. Does he think we would see a near 3% growth third time in a row?
Michael Hewson:
Despite the rise in interest rates, we’ve seen over the past few months, the US economy has held up reasonably well, with strong growth in Q3 as well as Q4, after a weak H1. The first iteration of US Q4 GDP saw the economy expand by 2.9%, which was above expectations of 2.5%. Personal consumption was a little disappointing, slipping back to 2.1%, which wasn’t that surprising given that November and December retail sales contracted. This trend will probably rebound in the January personal spending and income numbers.
