Growth last quarter in the US was below expectations

The US economy grew 2.7 percent in the fourth quarter of 2022, below expectations.

The US Department of Commerce released its second estimates for GDP data for October through December 2022.

Consequently, US GDP rose 2.7 percent annually in the fourth quarter of last year. The GDP data, which was revised downwards in the aforementioned period, remained below market expectations.

In the groundbreaking data on the country’s GDP data released in January, it was noted that the economy grew by 2.9 percent in the fourth quarter of last year.

While the US economy contracted 1.6 percent in the first quarter and 0.6 percent in the second quarter of last year, it grew 3.2 percent in the third quarter.

The country’s economy grew 2.1 percent in 2022. The US economy had posted its fastest growth since 1984, growing 5.9 percent in 2021.

DECREASE IN CONSTRUCTION AND EXPORTS AFFECTED

Growth in the US economy in the fourth quarter of last year was driven in part by declines in residential fixed investment and exports, offset by increases in private investment in inventory, consumer spending, investment fixed nonresidential, federal government spending, and state and local government spending. . In the same period, imports decreased.

The downward revisions in consumer spending and exports, on the other hand, were partially offset by the upward revisions in fixed investments.

The increase in personal consumption spending in the last quarter of last year was revised from 2.1 percent to 1.4 percent.

In the fourth quarter of last year, the increase in the personal consumption expenditures price index increased from 3.2 percent to 3.7 percent. When food and energy expenditures are excluded from the calculation, the basic personal consumption expenditures price index increased from 3.9% to 4.3% in this period. (AA)