U.S. Economic Growth Downwardly Revised To 2.6% In Q4

(RTTNews) - The U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2022, according to revised data released by the Commerce Department on Thursday.

The report said real gross domestic product shot up by 2.6 percent in the fourth quarter compared to the previously reported 2.7 percent jump. Economists had expected the pace of growth to be unrevised.

The Commerce Department said the slower than previously estimated growth reflected downward revisions to exports and consumer spending.

The increase in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was downwardly revised to 1.0 percent from 1.4 percent.

Meanwhile, upward revisions to non-residential fixed investment, residential fixed investment, and state and local government spending helped limit the downside.

The downwardly revised GDP growth in the fourth quarter compares to the 3.2 percent spike seen in the third quarter.

The Commerce Department said the slowdown primarily reflected a downturn in exports and decelerations in consumer spending, non-residential fixed investment, and state and local government spending.

The negative contributions were partly offset by an upturn in private inventory investment, a smaller decrease in residential fixed investment, and an acceleration in federal government spending.

The report also showed fourth quarter growth in core consumer prices, which exclude food and energy prices, was upwardly revised to 4.4 percent from 4.3 percent.

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