Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of
2022 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent. …
Compared to the third quarter, the deceleration in real GDP in the fourth quarter primarily reflected a
downturn in exports and decelerations in nonresidential fixed investment, state and local government
spending, and consumer spending. These movements were partly offset by an upturn in private
inventory investment, an acceleration in federal government spending, and a smaller decrease in
residential fixed investment. Imports decreased less in the fourth quarter than in the third quarter.
Current-dollar GDP increased 6.5 percent at an annual rate, or $408.6 billion, in the fourth quarter to a
level of $26.13 trillion. In the third quarter, GDP increased 7.7 percent, or $475.4 billion (tables 1 and 3).
The price index for gross domestic purchases increased 3.2 percent in the fourth quarter, compared
with an increase of 4.8 percent in the third quarter (table 4). The PCE price index increased 3.2 percent, compared with an increase of 4.3 percent. Excluding food and energy prices, the PCE price index increased 3.9 percent, compared with an increase of 4.7 percent.
[Better than expected, but not otherwise impressive. Consumer spending slowed in Q4 from Q3, and final sales of domestic product only went up 1.4%, after rising 4.5% in Q3. Exports dropped significantly from 14.6% in Q3 to -1.3% in Q4. On the positive side, gross private domestic investment was 1.4% after two successive negative quarters. It’s not bad, but it doesn’t look like the economy is about to boom either. — Ed]
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