The numbers: A slumping housing market and bigger trade deficit softened up the economy in the final three months of 2018 after a torrid spell of growth in the middle of last year, but consumers and businesses still showed plenty of resilience despite rising headwinds.
The partial government shutdown that began shortly before Christmas may have been enough to prevent the economy from hitting the 3% mark and giving President Trump a symbolic victory. The shutdown may have cost the economy 0.1 percentage point of growth in the fourth quarter, the Bureau of Economic Analysis said.What happened: Consumer spending, the main engine of the economy, increased a healthy 2.8% in the fourth quarter.
The housing market, as expected, was weak again. Investment in new construction fell 3.5%, marking the fourth drop in a row. The rate of inflation slowed a bit. The PCE index rose at a 1.5% pace in the quarter, with the core rate that excludes food and energy up 1.7%. Inflation ran about 2% for the entire year.Big picture: The fourth-quarter GDP report is mainly a look in the rearview mirror, but it does show the economy slowed toward the end of 2018. Trade tensions with China, the fading effects of the Trump tax cuts and slower government spending were some of the contributing factors.
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Economy slows to 2.6% in 4th quarter, GDP shows, but consumers and businesses show plenty of resilienceA slumping housing market and bigger trade deficit softened up the economy in the final three months of 2018 after a torrid spell of growth last spring and summer, but consumers and businesses still showed plenty of resilience. GDP grew 2.6% in the fourth quarter and 2.9% for all of 2018. Uh, 2018 was 3%+GDP. Best since 2005 actually. well noted marketwatch “was” Q3 was peak. Now we roll down the Rate of Change sine curve as we compare against 2018 & two-year average.
Source: MarketWatch - 🏆 3. / 97 Read more »
Black market and illegal dealing now accounts for 20% of Russia's GDP: ReportThe Russian black market is the same size as its total federal spending budget for 2019. BlackMarket in U.S. is a smaller percent of a larger GDP but it is bigger dollar-volume BlackMarket than Russia's, yes? And Putin used his dark money to establish a shadow economy in America. A criminal state, and Stump praises him, wants to be like him. This is what racism gets you, incompetent crooked people where they should never be.
Source: Newsweek - 🏆 468. / 52 Read more »
Stocks under pressure | Trump cuts summit short | GDP data setStock futures are pointing to another lower Wall Street open, following a mixed Wednesday session. TrumpFail The media is so funny. After all the leftist media piles on trump would one think that Kimmy might think trump will be gone shortly and he can go back to building and testing nukes with the next president who most likely will be weak.
Source: CNBC - 🏆 12. / 72 Read more »
Stocks little changed despite stronger-than-expected GDPStocks were little changed at Thursday's open as stronger-than-expected economic data were offset by talks between President Donald Trump and North Korean leader Kim Jong Un falling through. It’s amazing how you’re still trying to connect real world events with financial markets performance. Global depression in December and best time ever since then? No deal is better than a bad deal..... too bad feckless Obama did not think the same way All of the Mainstream media was hoping Trump would cave. Today they make the best of their sincere disappointment.
Source: CNBC - 🏆 12. / 72 Read more »
Trump-Kim summit fizzles; AB InBev surges; US GDPToday’s top business headlines with ChristineRomans before the opening bell on Wall Street: ChristineRomans El que se pospusieran los aranceles a China, es un buen comienzo para los mercados.
Source: CNN - 🏆 4. / 95 Read more »