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US economy shows signs of slowdown: Statistics

As per collected data from the past years, economists have analysed the US economy at its latest position.

Washington DC, 27 January 2023 (GNP): The US economy grew more quickly than anticipated until the end of 2022, but there were indications of declining underlying demand as growth in this year’s economy is threatened by the sharpest interest-rate increases in decades.

Following a 3.2% gain in the third quarter, the Commerce Department’s preliminary estimate of the gross domestic product for the last three months of 2022 indicated an increase of 2.9% annually. While government spending matched the largest jump since early 2021, around half of the GDP growth was due to inventory buildup. The largest sector of the economy, personal consumption, expanded at a 2.1% rate, which was less than anticipated.

The mixed data indicates that the Federal Reserve still has a path to a soft landing because officials plan to further scale down their rate increases next week and debate when to raise rates again.

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Lindsey Piegza, an economist, commented on the situation of the American economy: “When we look at what’s happening with the consumer, which is the backbone of the US economy, we are seeing a clear loss of momentum. Without the consumer happy and healthy out in the marketplace, we simply cannot expect to maintain positive growth, let alone more robust growth similar to that of last year.”