U.S. GDP according to advance estimates by the Bureau of Economic Analysis grew by 3.2 % over the previous quarter. This is a clear sign that the recovery in growth is continuing, albeit at a slower pace than hoped. Personal consumption and private non residential business investment led the way. Imports declined thereby improving the trade balance contribution to growth. There was a fall in private inventory investment, as well as in federal government spending. Auto production also fell compared
to the previous quarter. We shall see what the revisions reveal when they are announced at the end of February. The news is positive but not
yet good enough to make a major dent in the rate of unemployment. The declining
contribution of federal government spending is also another reason to bring forward more spending and somehow overcome the Republican opposition to necessary stimulus and investment in infrastructure.
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