US Q4 GDP Revised Higher to 4.1%

US economy progressing well, as the Q4 GDP report showed

Written by: Skerdian Meta • Thursday, February 25, 2021 • 1 min read

• Last updated: Thursday, February 25, 2021

The US GDP report for Q4 was released a while ago, showing a slight improvement in this second reading, compared to the initial estimate. A 4.1% expansion in GDP is quite respectable for a time when the coronavirus restrictions had been increased again, especially compared to Europe, which is heading toward another recession. Below is the GDP report:

US Q4 2020 GDP Estimate

First reading was +4.0%
Final Q3 reading was +33.4%
Personal consumption +2.4% vs +2.5% expected
GDP price index +2.1% vs +2.0% expected
Core PCE +1.4% vs +1.4% expected
Deflator +2.0%
Full report

Details:

Ex motor vehicles +4.7% vs +4.5% prelim
Final sales +3.0% vs +3.0% prelim
Inventories added 1.11 pp to GDP vs 1.04 in prelim report
Business investment +14.0% vs +13.8% prelim
Business investment in equipment +25.7% vs +24.9% prelim
Exports +21.8% vs +22.0% prelim
Imports +29.6% vs +29.5% prelim
Home investment +35.8% vs +33.5% prelim

The consumer was a tad weaker in Q4 than initial reports suggested, while business and home investment was a bit stronger. Overall, I don’t see anything here that will bleed into Q1 2021.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.