US economy expands 2.9% in December quarter

Washington [US], Jan 27 (ANI): Real Gross Domestic Product (GDP) grew at an annualized rate of 2.9% in the fourth quarter of 2022. Real GDP in the third quarter he increased by 3.2%, according to published ‘ex-ante’ estimates. According to the Bureau of Economic Analysis.

According to the U.S. Department of Commerce, real GDP growth reflects increases in private inventory investment, consumer spending, federal spending, state and local government spending, and non-residential capital spending, while residential capital spending and Partly offset by a decline in exports. . Imports deducted in GDP calculation decreased.

“The increase in private inventory investment was led by manufacturing (primarily oil, coal and chemical products), mining, utilities and construction (led by utilities),” the U.S. Department of Commerce said. The increase in consumer spending reflects increases in both services and goods, according to the Bureau of Economic Analysis.

“The news couldn’t be better,” US President Joe Biden said of Thursday’s GDP report. “We’re on the right track. Now we have to protect those interests.” The President of the United States was giving a speech on PBS, the US public broadcasting service.

In the services sector, healthcare, housing and utilities, and ‘other’ services (particularly personal care services) led the increase. Among goods, automobiles and parts dominated. Among federal spending, the increase was led by nondefense spending, according to the U.S. Department of Commerce.

“Increased state and local government spending primarily reflected higher compensation for state and local government employees. offset,” said the Bureau of Economic Analysis. said in a report on Thursday.

The U.S. Department of Commerce said, “Compared to the third quarter, the slowdown in real GDP in the fourth quarter primarily reflects weaker exports and slower non-residential capital spending, state and local government spending, and consumer spending. This was partially offset by higher private inventory investment, accelerated federal spending, and a slight decline in residential capital spending. Imports fell less in the fourth quarter than in the third, according to the US Department of Commerce.

GDP in current dollars increased by 6.5% on an annualized basis, or US$408.6 billion, to a level of US$26.13 trillion in the fourth quarter. According to the Bureau of Economic Analysis, GDP in the third quarter increased by 7.7%, or US$475.4 billion.

Non-residential capital investment is often viewed as the most important sector for sustaining economic expansion as well as contributing to long-term economic growth. Non-residential capital investment has three main components: structures, equipment and intellectual property products.

“The GDP estimate released today is based on source data that is incomplete or is subject to further revision by the source agency. It is scheduled to be released on February 23, 2023. According to a report by the Bureau of Economic Analysis, (Ani)