The Commerce Department reports that gross domestic product expanded 1.9% on an annual basis in the fourth quarter. That’s below the 3.5% in the third quarter and below the 2.2% expected by economists. For the full year, the U.S. grew just 1.6% compared to 2.6% in 2015. Tt was the weakest performance since 2011. The historical average is 3.3% and the last time the U.S. topped 3% was in 2005. A wider trade deficit was the biggest negative in the fourth quarter. The economy would have topped 3% growth if the trade gap had been unchanged. Consumers increased spending by 2.5%.
The University of Michigan’s Survey of Consumer Sentiment rose 0.3 to 98.5, higher than the 98.2 reading forecast by economists. It’s 7.1% higher than a year ago. The current economic conditions subindex fell slightly but is 4.6% higher than a year ago. The expectations gauge jumped to 90.3 from 89.5 and is 9.2% higher than January 2016.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
