GDP Grew 2.6% in Q4

The government just reported that the economy grew at a 2.6% rate in Q4. Honestly, that’s not that great. But considering that Q2 and Q3 were pretty good, it’s nice to see us not give it all back. In fact, the last three quarters were the best for real GDP growth since the last two quarters of 2003 and Q1 of 2004.

Here’s a look at the trailing three-quarter growth rate (not annualized):

We’re somewhat back to normal! Interestingly, nominal GDP grew by 2.54%, a bit less than RGDP. That’s what deflation does.

For the year, RGDP grew by 2.42% which was our best showing since 2010.

We need the last three quarters to repeat themselves for another four years, and inflation to return to 2%. That would be very good.

Posted by Eddy Elfenbein on January 30th, 2015 at 8:52 am

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