Wednesday, February 26, 2014
A healthy GDP number
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

The headlines of the second estimate of GDP were unexciting. GDP rose by 0.7% in the final quarter of 2013, in line with the original estimate. GDP growth for 2013 as a whole was nudged down from 1.9% to 1.8%.

The detailed picture is, however, a lot better. Net trade and business investment both contributed significantly to growth in the final quarter, and the business investment numbers, in particular, are looking a lot better. Net trade had a terrible third quarter but contributed 0.4 points to growth in the final three months of the year.

The "consumer-driven recovery" was not so consumer-driven in the final quarter, the 0.4% rise in consumer spending being less than the overall rise in GDP. Overall, a healthier number. More here.