The US’s GDP Q4 growth figures stay unchanged at 2.2% after some economists suggested the Commerce Department would have to revise to 1.5%.
Latest business investment spending data points to a slowing of growth. After its sixth straight monthly fall 2015’s first quarter is looking pretty weak, in part thanks to bad weather and a West Coast ports labour dispute.
Evidence points to some pressure on the manufacturing sector thanks to the strong dollar, with a fall in orders for capital goods. Core capital goods orders last rose in August.
The strong dollar has hurt spending on capital and durable goods as multinational companies’ overseas profits have been hit. Since last June when the Fed said interest rates would rise later this year the dollar has gained over 13% against its major trading partners.
From July to September GDP grew at 5% and corporate after-tax profits were 4.7% up. But for Q4 the estimate is for a 1.6% fall in profits, and for a 8.3% drop in profits for 2014, the biggest annual fall since 2008..