Banca March | The review of US GDP for Q4 reveals little new, confirming the slowdown in growth from the previous 3.1% to 2.3%, with private consumption continuing to be the driving force of the economy. As for inflation figures, the PCE gives some respite by coming in line with expectations and showing a lower contribution from the services item. When analysing the year-on-year rates, the general rate has dropped one tenth (2.5%) and the underlying rate two (2.6%), with a contribution of up to three tenths less in services.
These figures give the Fed some relief. The institution has made it clear that it needs significant and sustained improvements in prices before making any moves.
