From -0.1% to +0.1% (on expectations of a 0.5% print): the Q4 GDP revision was the smallest possible to make it seem that the US economy grew in the fourth quarter. A quick look at the components, however, reveals more of the same, with a small drop in the consumption contribution to GDP (from 1.52% to 1.47%), Fixed investment growing modestly, as well as imports, while the negative components remained roughly in line, with Inventories detracting the most from growth in Q4, or 1.55%. If JCP is any indication, expectations of aggressive inventory restocking in Q1 may be very optimistic. One thing is clear - the general GDP trendline is ugly, and we may now see downward revisions to Q1 growth forecasts in the aftermath of today's number.
A breakdown showing the various quarterly GDP components:
