U.S GDP rose 2.9% in the fourth quarter, more than expected even as recession fears loom

The economic shape was solid for solid in 2022 even though there was a question whether growth will turn negative in the year 2023.

It was reported on Thursday that the gross domestic product in the fourth quarter, the sum of all goods and services produced for October to december increased at 2.9% annualized pace, the commerce department reported this on thursday. Economists surveyed by Dow Jones had expected 2.8%.

In the quarter 3 growth rate was a little less in pace than 3.2%.

Stocks were mixed and treasury yields were mostly higher.

Consumer spending accounts for almost 68% of the GDP, which has gone up 2.1% for the period, the decrease was  down slightly by 2.3% in the previous year, it was positive

Though.

The inflation was quite low by the end of the year, it hit 41 year high in summer. The consumption of personal expenditure price increased 3.2%, this was in line with the expectations but decreased by 4.8% in quarter 3. If food and energy is excluded the chain weighted index increased 3.9%. 

While inflation numbers showed that the price increases are reducing, they remained above the federal reserve’s 2% target.

Along with consumer boost, an increase in private inventory investment, spending of government and non residential spending and fixed deposits helped with the GDP number.

Residential fixed investment went down 26.7%, there was a slide in housing because of this. Exports were reduced 1.3%.

The drop in housing subtracted by 1.3% points from the headline GDP number.

 Federal government spending increased by 6.2%, the surge was 11.2% on non defense outlay. 

State and local expenditures increased 2.3%. 

Government spending added 0.64% points to GDP. 

Following 2021 where GDP rise was at its strongest since 1984.

The first two quarters had a negative touch, matching the recession, a consumer and strong labor market helped growth turn positive.

Weekly jobless claims were down by 6,000 to 186,000.

Orders for long lasting goods were pretty good. Rising 5.6% compared with 2.4%.

Some sectors of the economy showed signs of recession even though the growth had been good.

Progress in housing has been slow in progress. Building permits decreased 30% in December from a year ago.

Consumer spending is also going down, Retail sales has been down by 1.1%

- Published By Team Nation Press News