February 27, 2015
IN A DEFLATIONARY EPOCH...:
Fourth-Quarter GDP in U.S. Rose Less Than Prior Estimate (Victoria Stilwell, February 27, 2015, Bloomberg)
Household consumption, which accounts for about 70 percent of the economy, grew at a 4.2 percent annualized rate in the fourth quarter, the most since the last three months of 2010. It was previously estimated at 4.3 percent. Purchases added 2.8 percentage points to growth.A smaller gain in spending on goods than previously calculated was almost fully offset by a bigger advance in purchases of services, which grew at a 4.1 percent pace, the most since 2000.
...even though we consume more it costs less.
Posted by Orrin Judd at February 27, 2015 11:44 AM
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