Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Government shutdown results in big US GDP downgrade

Government shutdown results in big US GDP downgrade

The US economy expanded at a slower rate than previously estimated in the final three months of 2013.

Fourth quarter GDP growth was revised down from an initial reading of 3.2% to 2.4%. The more tepid performance in the final months of the year follows the 4.1% surge in the third quarter.

Capital Economics' Paul Ashworth was not too concerned by the downgrade, pointing out the growth was still impressive given the goverment shutdown in October as the nation tried to find a resolution to its debt crisis. The shutdown resulted in a 5.6% drop in public spending, which subtracted more than 1% from growth.

For Ashworth the good news was the 7.3% increase in business investment, revised up from the initial estimate of a 3.8% gain, which helped to offset an 8.7% decline in residential investment.

He is now predicting a 2% growth in the first quarter of 2014, before an escalation towards the 3% mark.

'Once the weather-effects begin to unwind in the second quarter, we would anticipate a pick-up in GDP growth to nearer 3% annualised over the remaining three quarters of this year,' Ashworth said.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter