Consumer spending, which accounts for about 68% of GDP, increased 2.1% for the period, but housing saw a sharp decline, serving as a drag on growth.
US GDP Growth in Q4 2022
Gross domestic product (GDP) rose at a 2.9% annualized pace in the fourth quarter of 2022, slightly better than expected. Consumer spending weakened from the previous period but remained positive. A sharp slide in housing helped pull down GDP, while boosts in government spending and private investment aided growth.
US GDP in Q4 2022 and Recession Fears
The US economy finished 2022 in solid shape, with GDP rising 2.9% in the fourth quarter. However, economists and analysts still question whether growth will turn negative in the year ahead. Federal Reserve interest rate increases, a sharp decline in housing, and signs of a potential earnings recession raise concerns about a possible recession.