The US economy grew strongly again in the fourth quarter, mainly due to increased consumer spending on goods. Growth stabilized towards the end of the year, mainly due to higher interest rates and reduced demand for goods and services.
According to preliminary estimates by the Commerce Department, gross domestic product increased by 2.9 percent over the previous year in the last quarter. In the third quarter, the economy grew by 3.2%. Analysts and economists expect the slowdown in growth to continue and a mild recession in the US is expected in the second half of the year.
Retail
However, retail sales have already fallen sharply in recent months and the sector, like the housing market, already appears to be in a recession. And despite a strong job market, sentiment among entrepreneurs is deteriorating, Reuters reports.
The US economy recovered in the second half of the year, ending the contraction of 1.1 percent in the first six months. For the full year 2022, the economy grew 2.1%, down from 5.9% growth in 2021.
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There is a good chance that the US central bank, the Fed, will raise interest rates again. Market parties are pricing in a smaller step, by a quarter of a percentage point.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
