U.S. Economy Grew Slightly Less Than Previously Estimated In Q4

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U.S. Economy Grew Slightly Less Than Previously Estimated In Q4

(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2022.

The report said real gross domestic product jumped by 2.7 percent in the fourth quarter compared to the previously reported 2.9 percent surge. Economists had expected GDP growth to be unrevised.

The Commerce Department said the slower than previously estimated growth primarily reflected a downward revision to consumer spending, with the increase in consumer spending downwardly revised to 1.4 percent from 2.1 percent.

The report also showed an upward revision to imports, which are a subtraction in the calculation of GDP.

Meanwhile, the Commerce Department said an upward revision to nonresidential fixed investment partly offset the negative revisions.

The slower than previously estimated GDP growth in the fourth quarter compares to the 3.2 percent spike seen in the third quarter.

The deceleration primarily reflected a downturn in exports and decelerations in consumer spending, nonresidential fixed investment, and state and local government spending.

An upturn in private inventory investment, a smaller decrease in residential fixed investment, and an acceleration in federal government spending helped limit the downside.

The report also showed fourth quarter growth in core consumer prices, which excludes food and energy prices, was upwardly revised to 4.3 percent from 3.9 percent.

The upwardly revised price growth still reflects a slowdown from the 4.7 percent surge in the third quarter.

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