The growth figures expected by the markets have been announced. The US economy grew by 1.4 percent in the 4th quarter of 2025. Expectations ranged from 2.5 to 2.8 percent.
4th quarter real consumption expenditures were also below expectations of 2.4 percent and 3.5 percent.
On the other hand, “personal expenditures”, another data that the markets expected, was 0.4 percent, slightly above expectations. The expectation was 0.3 percent.
The core PCE price index was 3 percent annually.
Following the data, US stock market futures fell sharply. The DXY Index, which measures the strength of the dollar against other currencies, also went negative.
Since the announced figures point to weak economic activity, they may increase the market’s expectations for an interest rate cut from the Fed.
