The U.S. Gross Domestic Product's growth rate was upwardly revised to 4.3 per cent in the last quarter of 2020, surging above the 4.1 per cent that were projected in the second estimate.
According to the economic survey posted by the Bureau of Economic Analysis (BEA) in the U.S., the final GDP growth rate beat the preliminary market forecasts, which were expecting no changes to the findings of the advanced GDP report.
The GDP expansion over the last three months of 2020 reflects notable increases in spending in the private sector. Those are underpinned by higher consumer spending and investments in the private sector. The expansion was partly offset by decreased government spending over the same period.
The findings of today's economic report are largely inlined with the recent remarks of FED Chair Jerome Powell, who pointed to the current pace of economic recovery that is outstripping the initial expectations. The pace of recovery continues to accelerate, despite some bumps along the way.
Get details behind the increase in the fourth quarter GDP and look at how industries played a factor in the U.S. economy’s performance. Read our latest blog: https://t.co/whHnUEk6QJ pic.twitter.com/TOkfpRagZz— BEA News (@BEA_News) March 25, 2021
The U.S. economy is now better positioned to handle the remaining coronavirus fallout, which is noticeably affecting global markets. Stocks retreat while the demand for less risky securities, such as gold and the dollar, is rising.
This transformational change in the underlying market sentiment can be seen clearly on the daily chart below. As shown, the Nasdaq and the S&P 500 are falling, while the pace of gold's rally is outstripping the dollar index's moderate strengthening.