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4th Quarter GDP Misses Expectations

Macro data due for today is out.

4th Quarter GDP came in under expectations with a reading of 2.8%.

The biggest contribution to GDP was an increase in inventories of 1.94% followed by an increase in personal consumption of 1.45%.

Government stimulus is slowly being reduced. During the fourth quarter, government spending contracted by -0.93%. Component chart by www.zerohedge.com

Given the improvement of economic indicators during the 4th quarter and the constant positive surprises, I was expecting a number over 3% and thus I was dissapointed with 2.8% growth.

We also got the revised University of Michigan Consumer Confidence number.

It was revised higher to 75 from 74. If you look at the chart, you will observe a classic triple bottom pattern and support/resistance movement in this economic series.

Best regards,

Victor Riesco