Monthly GDP rose 0.2% in November. Growth for October was revised down by five-tenths to a 0.6% decline. The small increase in November reflected increases in PCE and net exports (among others) that were partially offset by decreases in construction spending and nonfarm inventory investment. The level of monthly GDP averaged over October and November was only 0.1% above the third-quarter average at an annual rate. Implicit in our latest tracking estimate of 0.4% annualized GDP growth in Q4 is a 0.2% increase (not annualized) in December. Click here for more information on MA’s Monthly GDP measure.
MA’s Ben Herzon was mentioned in the article “U.S. Trade Gap Narrows in November” by Anna Louie Sussman for The Wall Street Journal (excerpts shown below). Weak overseas economies, low commodity prices and a strong dollar have chilled trade flows, a sign of trouble for U.S. economic growth. The latest measure of U.S. trade flows from the Commerce Department on Wednesday showed imports and exports hitting their lowest level in years, a double whammy that hints at a domestic slowdown as well as anemic demand for U.S. products abroad. Much of the weakening in trade over the past year can be traced to falling commodity prices and slowdowns in major economies such as China and Brazil. The strong U.S. dollar, which drives up prices for overseas purchasers, has also dented U.S. exports and dragged down domestic economic growth. Even without further gains in the dollar, the downward pressure on net exports will continue … Continue Reading