empty
 
 

2012.04.2709:43:00UTC+00Us Economy Contracts Further in Q1 on Inventories and Weak Business Spending

 News

  • US GDP rose 2.2 pct in the Q1 down from 3 pct growth of Q4, missing expectations of a growth for 2.5 pct
  • US consumer spending increased at a 2.9 pct rate compared to a 2.1 pct rise in the Q4
  • Business spending fell at a 2.1 pct form a rise of 5.2 pct in the Q4 of 2011
  • Motor vehicle output contributed 1.12 pct points to Q1 GDP growth.
  • Inventories also helped GDP growth with inventories increasing $69.5 billion after rising $52.2 billion in the Q4
  • Excluding inventories, GDP rose at a 1.6 pct from 1.1 pct in the Q4

Quotes

   "GDP was worse-than-expected and that increases the chances of the Fed launching QE3. Markets shrugged off the Spanish rating action and we could see risk assets continue upward momentum on expectations of a Fed move. This is negative for the dollar as it increases QE3 chances. Some of the other data may offset GDP a bit and we could see some back-and-forth action today." 

 Daniel Hwang, Senior Currency Strategist, Forex.Com, New York 

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback