Brexit fears fail to halt economic optimism

Although this may have no bearing on growth right now, it is likely to impact GDP levels and confidence levels at some point in 2017, so a sharp decline in this figure is worth noting. "NAHB's forecast calls for continued upward momentum this year, with housing starts expected to rise 10 percent over the course of 2017". A strong dollar can hurt manufacturers by making US exports more expensive for foreign customers.

"As the United Kingdom economy enters a more challenging environment, the government's recent commitment to a new industrial strategy will be an important step to ensuring that prosperity reaches all parts of the United Kingdom". "But frankly we think it's probably too early to figure out what that might be and how it might manifest itself". Excluding transport-related goods, orders rose 0.5%, the sixth straight increase. "Although I am cautiously optimistic that some of these forces will abate over time, I anticipate that they will continue to restrain overall growth over the medium term".

This gain only confirms an increase in business spending and business investing that should act as a solid starting basis for the first quarter of 2017.

When asked when the pace of growth will pick up pace, El-Erian said, "The short-term qualifiers relate to the policy formulation process and passage through Congress, together with the absence of large-scale trade disruptions". Residential and business investment both picked up.

USA economic growth slowed more than expected in the final three months of past year. Companies also scaled production past year to drawn down an excessive buildup in inventories.

The quarter to quarter decline in the headline growth rate came from a number of sources: the growth of consumer spending on services was more than halved (down -0.68%), exports went into contraction (off a dramatic -1.69%) and imports were down yet another -0.86%. That was the biggest net-negative from trade since the second quarter of 2010.




Some analysts are blaming the monthly downturn to the natural volatility of the home-building market, especially during the winter months, as well as rising prices for cutting into demand.

Previous expectations called for 2.2pc growth for the fourth quarter.

"The economy has strong underlying fundamentals", Ryan Sweet of West Chester, PA-based Moody's Analytics Inc., said prior to the Commerce Department's report being released.

For the full year, the US Commerce Department's data released on Friday, showed a growth rate of just 1.6 percent, meaning it was a full point below the 2015 rate. Previously, inventories had been a drag on growth for five consecutive quarters.

The official data means that Britain's gross domestic product (GDP) has grown by a steady 0.6% in each of the last three quarters, including the two that followed the Brexit vote.

This follows a report from Wednesday showing sales of existing homes in the USA declined in December while moving higher for all of past year as the nation's manufacturing sector began 2017 on a strong note.

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