The US Economy Grew More Than Expected in 2022

The US Economy Grew , More Than Expected in 2022.

CNN reports that the United States economy expanded again in the fourth quarter, showing solid growth to end 2022.

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The news comes despite consumers and businesses battling historically high inflation and interest rates.

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The broadest measure of economic activity, the gross domestic product, increased 2.9% from October to December 2022.

According to Commerce Department data released on January 26, last quarter's 2.9% expansion represents continued improvement.

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CNN reports that 2022 was a year of transition for the economy as it continued to recover from the pandemic, contracting in back-to-back quarters to start 2022.

Since the beginning of 2023, businesses and consumers have shifted their spending to compensate for inflation and interest climbing.

Since the beginning of 2023, businesses and consumers have shifted their spending to compensate for inflation and interest climbing.

Consumers are increasingly struggling to navigate the ongoing effects from the spike in prices last year by drawing on credit and savings, John Leer, chief economist of Morning Consult, via CNN.

With consumer demand likely to continue its downward trajectory, business investment is also likely to slow in the coming quarters, increasing the probability of a recession this year, John Leer, chief economist of Morning Consult, via CNN.

According to Refinitiv, economists expected the fourth quarter's GDP to grow at an adjusted rate of 2.6%.

CNN reports that the most recent report is the first of three official estimates for the fourth quarter by the Commerce Department and is often revised later.