OPINION
Market Rating Before FOMC MeetingJan 31
US Economy recorded the strongest growth of the last 38 years
According to the data published by the Bureau of Economic Analysis (BEA) of the US Department of Commerce, gross domestic product (GDP) was 22.99 trillion USD in Q4 2021 and the annual growth rate was 6.9 percent, above the market expectations of 5.5.
BEA report stated that the increase in real GDP was primarily driven by stock investments, exports, imports, personal consumption expenditures (PCE) and fixed investments of non-residents. However, it was reported that the decline in both federal and state government expenditures limited the increase slightly.
The report also stated that the retail and wholesale trade sectors led the increase in stock investments and consumer goods, industrial materials, food and travel sectors contributed the most to exports, which reflect the increases in goods and services.
Health services, transportation vehicles and housing products were the determining factors in personal consumption expenditures, which grew by 3.3 percent in this period, and durable goods orders had a restrictive effect. The decline in federal government spending was due to a decrease in services and defense spending.
After the GDP figures recorded the strongest growth since 1984 with 5.7 percent in 2022, the upward movement in the dollar index, which is already increasing as a result of the Fed's rate hike signal, gained more momentum. DXY tested 97.30, the highest level of the last 18 months.
BEA report stated that the increase in real GDP was primarily driven by stock investments, exports, imports, personal consumption expenditures (PCE) and fixed investments of non-residents. However, it was reported that the decline in both federal and state government expenditures limited the increase slightly.
The report also stated that the retail and wholesale trade sectors led the increase in stock investments and consumer goods, industrial materials, food and travel sectors contributed the most to exports, which reflect the increases in goods and services.
Health services, transportation vehicles and housing products were the determining factors in personal consumption expenditures, which grew by 3.3 percent in this period, and durable goods orders had a restrictive effect. The decline in federal government spending was due to a decrease in services and defense spending.
After the GDP figures recorded the strongest growth since 1984 with 5.7 percent in 2022, the upward movement in the dollar index, which is already increasing as a result of the Fed's rate hike signal, gained more momentum. DXY tested 97.30, the highest level of the last 18 months.
