BNP Paribas now sees no US GDP growth in fourth quarter
NEW YORK: BNP Paribas’ US economists said on Friday they now expect the world’s biggest economy likely posted no growth in the fourth quarter following disappointing data on December retail sales and November business inventories.
The bank had previously projected a slim 0.5 percent increase in US gross domestic product in the final quarter of 2015. The US economy will likely rebound in the first half of this year with upside risk to growth in the first quarter, they said.
“While (fourth-quarter) growth looks worse than we expected, employment and real incomes are running strong, which should bode well for growth in (the first half of) 2016,” BNP’s US economists wrote in a research note on Friday.