Macroeconomic Microcosm

16Q4 GDP growth was a perfect microcosm of US economic activity of the last several years. GDP growth was a disappointing 1.9%, albeit par for the course of late. More importantly, household consumption, 69% of GDP, grew a solid 2.97% with both goods and services growing nicely. Conversely, investment, be it residential, nonresidential, or inventories, contributed little, as did government spending, while net exports, though small, were a slight drag.