Revised upwards the economic growth of EU; GDP rose 1% – Newscasts Televisa

WASHINGTON, Feb.. 26, 2016.- The US economic growth slowed in the fourth quarter of 2015, but not as much as previously thought, with less aggressive companies in reducing their unwanted inventories, which could affect production in the first three months of 2016.

the Gross Domestic Product (GDP) increased 1.0 percent annual rate, rather than the increase of 0.7 percent previously reported, the Commerce Department said Friday in its second estimate the behavior of the economy.

Economists projected that GDP for the fourth quarter of 2015 was revised downward at a rate of 0.4 percent. The US economy grew at a rate of 2.0 percent in the third quarter of 2015.

The companies accumulated 81,700 million in inventories instead of 68,600 million reported last month. That reflected an upward revision in the valuation adjustment of inventories.

Inventories subtracted only 0.14 percentage point of GDP growth instead of 0.45 percentage point previously reported.

further accumulation of inventories is bad news for the growth of the first quarter GDP, it means that companies have little incentive to make new orders, which still contain production.

the estimates for growth of the first quarter GDP they are up 2.5 percent, but the risks are on the downside amid a slowdown in global economies, the strong dollar and a recent slump in the stock markets have tightened financial market conditions.

the low price of oil has also pressured profits of oil companies and firms that provide services to oil companies, such as Schlumberger and Halliburton, which has led to reduced budgets for capital expenditures.

the upward revision of fourth-quarter GDP also reflected a to initially estimated, due to a contraction in imports smaller trade deficit. The trade deficit subtracted 0.25 percentage points to GDP growth instead of 0.47 percentage point reported last month.

Business spending on equipment was 1.8 percent contracted last quarter, compared to a low previously reported 2.5 percent.

consumer spending, which accounts for more than two-thirds of economic activity in the United States, rose at a rate of 2.0 percent instead of 2.2 percent reported last month.

TFO