US Q4 GDP Grows Smaller-Than-Forecast 1.4% on Shutdown Impact

Economic Indicators - December inflation numbers remain concerning, with the PC core at 3%, significantly above the Federal Reserve's target [1] - Wages and salaries increased by only 0.2% in December, a notable decline from November's figures [2] GDP and Spending - GDP growth came in at 1.4%, which was significantly lower than anticipated, reflecting a decline in consumption [3] - Business spending increased, primarily driven by investments in software and intellectual property, while inventories and trade contributed minimally [3] Government Shutdown Impact - The government shutdown is estimated to have reduced GDP by one percentage point, as it affected government spending due to unpaid wages [4] - The impact of the shutdown is expected to reverse in the first quarter as back pay is distributed to affected workers [4]