Lower Than Expected Growth in the Fourth Quarter of 2022 in the US
The US economic growth in the fourth quarter of 2022 was lower than expected. Inflation-adjusted gross domestic product (GDP) increased by 2.7% annually, below the 2.9% level in previous reports. This was attributed to a decrease in consumer spending, which accounts for over two-thirds of US economic activity, which increased by only 1.7% in the fourth quarter. Supply chain disruptions and labor shortages that affect various sectors such as production, transportation, and accommodation are some of the factors that have slowed growth.
Despite the weaker fourth-quarter growth, the US economy expanded strongly in 2022, recording a growth rate of 5.7%, the highest annual growth rate since 1984. However, the report also shows that the personal consumption expenditures (PCE) price index, the inflation measure preferred by the Federal Reserve, reached its highest level since 1982 with an annual increase of 5.4%. This highlights concerns about increasing inflation pressures and their potential impact on the US economy and monetary policy.
Despite the weaker fourth-quarter growth, the US economy expanded strongly in 2022, recording a growth rate of 5.7%, the highest annual growth rate since 1984. However, the report also shows that the personal consumption expenditures (PCE) price index, the inflation measure preferred by the Federal Reserve, reached its highest level since 1982 with an annual increase of 5.4%. This highlights concerns about increasing inflation pressures and their potential impact on the US economy and monetary policy.
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