The United States Department of Commerce announced that in the fourth quarter of 2015, the US real GDP growth (flash) eased to an annual pace of 0.7% (3Q15:+2%), lower than market expectation for a growth of 0.8%, due to impacts including a slowdown in the growth of consumption expenditure.
The personal consumption expenditures (PCE) price index, which the Fed marks it as the inflation benchmark, grew 0.1% quarterly in the fourth quarter (prior reading: +1.3%), while the market had expected for a rise of 0.7%. Meanwhile, core PCE price index (flash) gained 1.2% quarterly (prior reading: +1.4%).
The US's GDP for the year 2015 grew 2.4% in the flash reading. The Department said the slowdown in economic growth is not only because of slowdown in personal consumption expenditure, but also corporate investment, exports, as well as expenditure of state and local governments.
(AAStocks Financial News)