Economic Analysis – Week of February 4, 2015

Fourth-quarter GDP growth failed to meet expectations. The slowdown was likely a return to normal from the bounce that occurred during Q2 and Q3 after a weather-induced slump in Q1. Traders focused on the Fed’s statements that the economies of Europe and Asia will affect the decision to change monetary policy. Analysts anticipate a decrease in jobs growth to 230,000 in this Friday’s report, and there will be continued interest in wage growth and the labor force participation rate. The rising dollar does not appear to have much of an impact in the manufacturing report. Consumer spending has been solid, adjusting for gas price declines and volatility of motor-vehicle sales, and is responsible for the economy’s growth.

More analysis of this week’s news by Econoday’s Senior Economist Mark Rogers:

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