Thursday, March 6, 2014
Monday, March 3, 2014
Wednesday, February 12, 2014
While the Employment Situation and PCE Index are important U.S. market indicators for the Federal Reserve, U.S. gross domestic product data also plays a role in determining monetary policy.
In the Commerce Department’s most recent GDP report the Bureau of Economic Analysis (BEA) reported a 3.2% fourth quarter increase in U.S. GDP from the third quarter of 2013. This increase followed a 4.1% quarterly increase in the third quarter. However, for the year the BEA reported a 1.9% annual GDP increase.
In the fourth quarter Personal Consumption Expenditure and Gross Private Domestic Investment increased 3.3% and 3.4% respectively while Government Consumption Expenditures and Gross Investment decreased 4.9%.
Personal Consumption Expenditure had the greatest increase in Goods adding 4.9% while Services also increased 2.5%. In Gross Private Domestic Investment Fixed Investment products increased 0.9% and Residential decreased 9.8%.
Federal Government Expenditures and Investments decreased 12.6% in the fourth quarter with National Defense decreasing 14%. State and Local Government Expenditures increased 0.5% in the fourth quarter.
While the national unemployment rate has decreased to 6.6% and the PCE Index inflation rate is 1.2%, the GDP report showed signs of slower improvement in the underlying gross domestic product data.