U.S. GDP grew 2.6 percent and UK 2.8 in Q4

Genevieve Signoret

Overall Activity

USA GDP growth in Q4 was mainly driven by accelerating private consumption. USA GDP grew 2.6% q/q saar from 5.0% in Q3, slightly above our forecast (2.5%). Private consumption (4.3% q/q saar) contributed 2.9 percentage points to GDP growth. Private consumption had been accelerating since Q2 2014, when it grew at 2.5%. The GDP slowdown from previous quarter was the result of surging imports (affecting net trade) and contracting government spending.

UK Q4 GDP slowed down to 2.0% q/q saar from 2.8% saar q/q in Q3.

U.S. GDP grew 2.6% and UK 2.8% in Q4

U.S. growth is being driven mainly by consumption

The growth rate for IGAE—Mexico’sGDP proxy—slowed down to 2.0% y/y from 2.7% in November. On trend (6-month moving average), the IGAE year-on-year change remained unmoved at 2.4%.

Mexico’s GDP proxy, IGAE, continues to accelerate on trend