US: Real GDP grows at an annual rate of 2.7% in Q4 vs. 2.9% expected
|- The US BEA revised Q4 GDP lower to 2.7% from 2.9%.
- US Dollar Index clings to modest daily gains above 104.50.
The real Gross Domestic Product (GDP) of the US expanded at an annualized rate of 2.7% in the fourth quarter, the US Bureau of Economic Analysis' (BEA) second estimate showed on Thursday. This reading came in below the initial estimate and the market expectation of 2.9%.
"The updated estimates primarily reflected a downward revision to consumer spending that was partly offset by an upward revision to nonresidential fixed investment," the BEA explained in its publication. "Imports, which are a subtraction in the calculation of GDP, were revised up."
Market reaction
With the initial reaction, the US Dollar Index edged slightly higher and was last seen rising 0.1% on the day at 104.60.
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