Reflecting the past period, 4Q20 GDP growth was announced at the first reading as 4% on an annualized basis. The economy grew in 4Q20 after the growth achieved by 33.4% again with re-opening and increasing business activities in the previous period. The increase in real GDP was reflected in increases in exports, non-residential fixed investment, personal consumption expenditure (PCE), fixed housing investment and private inventory investments, partially offset by declines in state and local government spending and federal government spending. We observe that imports also increased in this period.
The increase in exports stemmed from the exports of goods; There is also an increase in fixed investments. The increase in PCE can be explained intensely by spending on healthcare services. The increase in housing investments seems to have occurred with the increase in demand for detached houses due to the epidemic in this period. Disposable personal income decreased by 372.5 billion dollars (8.1%) in 4Q20, while real disposable income decreased by 9.5%. In 3Q20, the decline in real income was 16.3%.
Jobless claims were announced at the level of 847K, below the market expectation of 875K. The previous week’s level was increased by 14,000, from 900,000 to 914,000. The 4-week moving average was 868,000, up 16,250 compared to the revised average of the previous week. The previous week’s average was increased by 3,750, revised from 848,000 to 851,750.
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