US GDP revised higher, personal consumption leads the way

By FXStreet The final Q4 US GDP figure released today revised the growth rate higher to 1.4% from the initial estimate of 1% mainly due to increased personal spending on services.

The report also showed that corporate profits dropped in 2015 by the most in seven years. This was largely given the low oil prices and strong US dollar pushed manufacturing sector in the recession and also took a toll on exports.

Markets were expecting commerce department to leave the growth rate unchanged at 1%. Household purchases, which account for almost 70 percent of the economy, rose at a 2.4 % compared with a previously estimated 2%.

Meanwhile, core personal consumption expenditure (core pce) was left unrevised at 1.3% y/y.
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Source:: FX Street