GDP, G-20 Meeting, Consumer Sentiment
February 26, 2016
Friday – February 26
The Bureau of Economic Analysis reported on Friday that the second reading for fourth quarter Gross Domestic Product rose 1.0%, above the 0.4% expected and up from the initial reading of 0.7%. The gains were due in part to an uptick in inventory stockpiling. Within the report it showed that the consumer spending component rose 2%, below the 2.2% from the first reading, and was much weaker compared to spring and fall.
Investors are looking to the G-20 meeting in Shanghai this weekend in hopes that it will produce a plan to stimulate global growth, along with stable oil prices. The G-20 is a group of finance ministers and central bank governors from 19 of the world’s largest economies, and the European Union. The G-20 was formed in 1999 as a forum for member nations to discuss key issues related to the global economy.
Thomson Reuters University of Michigan’s Consumer Sentiment Index edged lower in February to 91.7 from the 92 recorded in January. The 91.7 was better than the 91 expected. The survey measures consumers’ attitudes toward current economic conditions and future expectations. The 91.7 this month is below the 95.4 in February 2015. Within the report it showed that current economic conditions rose slightly, while future expectations were slightly lower.
