Headline GDP was a tad weak, but the internals were strong.
The best number was real final sales:
Real final sales of domestic product — GDP less change in private inventories — increased 7.1 per cent in the fourth quarter, compared with an increase of 0.9 per cent in the third.
Remember how a lot of bears pointed to inventory as a reason to discount former numbers? Well, this time inventory was actually a drag.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
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