Q4 initial GDP +2.6%, above +2.3% Bloomberg.>

US DATA: Q4 initial GDP +2.6%, above +2.3% Bloomberg consensus and +2.5% 

MNI median, but below the +2.9% whisper number. The GDP price index was 

+1.8% vs +1.7% expected, unch from +1.8% in Q3. The data showed slower, 

but still positive, PCE growth, and strong nonres fixed invest growth. 

- 2018 GDP +2.9% vs +2.2% in 2017. Analysts expect a slower 2019 growth.

- When another solid inventory gain is removed, real final sales of 

domestic product +2.5% vs +1.0% in Q3, mostly reflecting the nonres 

fixed invest gain. Final sales to domestic purchasers +2.6% vs +2.9% Q3.

- The core PCE price index was +1.7% in Q4 after +1.6% in Q3, for y/y 

rate of +1.9% Q4 vs +2.0% Q3, so just below the FOMC's target.

- The slowdown in growth was due to smaller contributions from PCE 

(+1.92pp vs Q3 +2.37pp), private inventories (+0.13pp vs +2.33pp), and 

govt spending (+0.07pp vs +0.44pp). These were partially offset by a 

larger contribution from nonres fixed investment (+0.82pp vs +0.35pp) 

and a smaller drag from net exports (-0.22pp vs -1.99pp).