U.S. fourth-quarter GDP growth rate trimmed to 2.2% from 2.6%

• First reading was 2.6%
• Personal consumption 4.2%
• First reading on personal consumption was 4.3%
• GDP sales 2.1% vs 1.6% exp
• Inventories add 0.12 percentage points to GDP
• US GDP ex-motor vehicles +2.9% vs +3.5% previously
• Exports +3.2% vs +2.8% previously
• Imports +10.1% vs +8.9% previously
• Business investment in structures +5.0% vs +2.6% previously

Inflation:

• Core PCE 1.1% vs 1.1% exp
• GDP deflator 0.1% vs 0.0% exp

Nothing immediately jumps out. Trade was a bit stronger and vehicles added less to GDP than believed and that's a good sign for growth last year and going forward.

 

The June hike is off the table : From Janet Yellen during her last testimony humphrey-hawkins : "I don't see the point in looking at inflation without food and energy".