US Economy Grew at a Slower Pace in 4th Quarter as Consumer Spending Revised Lower

The U.S. economy expanded at a slower-than-expected pace in the fourth quarter, according to the second estimate from the Bureau of Economic Analysis (BEA).
In the three months ending in December, the GDP growth rate rose 2.7 percent, down from 3.2 percent in the third quarter. This was below the previous BEA estimate of 2.9 percent.
GDP sales increased 1.2 percent in the October-to-December period, down from 4.5 percent in the previous quarter.
Real GDP (inflation-adjusted) increased by 2.1 percent in 2022, down from 5.9 percent in 2021. Gains in consumer spending, exports, private inventory investment, and nonresidential fixed investment mainly drove much of the annual growth.
On the inflation front, the second BEA estimate confirmed that the GDP Price Index advanced by 3.9 percent, higher than the first estimate of 3.5 percent. This was also down from the third quarter’s 4.4 percent print. Personal consumption expenditure (PCE) prices rose 3.7 percent, while core PCE prices were up 4.3 percent quarter-over-quarter. Both prints were up from the initial estimate….