Source: Bureau of Economic Analysis
The US posted a 6.9% annual growth in the real gross domestic product in the fourth quarter of 2021, beating an estimated 5.5% increase and third quarter’s expansion of 2.3%. SPY is up +0.84%, DXY is up +0.81%.
- The surge in GDP reflected a rise in exports, private inventory investment, and PCE. Small declines in residential fixed investments and spending by the federal government were noted amid the downturn in local and state government spending.
- In current dollar terms, the national output increased at an annual rate of 14.2% or $790.1 billion to $23.99 trillion, higher than a gain of 8.4% in the third quarter.
- The price index gauging the gross domestic purchases rose by 6.9%, more than the previous quarter’s increase of 5.6%. The PCE index rose 6.5%, up from 5.3%.
- The personal income on current dollar terms rose by $106.3 billion, compared to a higher $127.9 billion increase in the third quarter.
- Disposable personal income rose by 0.3% or $14.1 billion, less than an increase of 0.8% in the third quarter. Real disposable income fell by 5.8%, higher than a decline of 4.3% in the third quarter.
- The personal savings fell to $1.34 trillion, from $1.72 trillion in the third quarter, with the personal savings rate at 7.4%, down from 9.5%.