Friday, January 30, 2015

US Economy Grows by 2.6% in Q4

The US economy grew slower than it did in Q3,  but it was not far from the expected growth range.  Business investment and government spending were a drag on the economy, but consumer spending which is 70% of GDP, increased in response to lower oil prices.  Some economists attribute the relatively strong performance of the US economy to structural factors which make US firms cost competitive in international trade.  This is not supported by the data.  Net exports were negative.

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