U.S. GDP grew at an annual rate of 2.9% in the last quarter of 2022.
The robust growth number, combined with low unemployment and solid consumer spending, indicates that the U.S. economy is healthy.
- Consumer spending, which accounts for ~68% of GDP, grew at a 2.1% annualized rate in Q4.
- GDP grew by 1% in 2022, down from the red-hot 5.7% growth seen in 2021.
- Housing suffered a downturn, with residential fixed investment, a metric used to measure the strength of the housing sector, contracting at an annual rate of 26.7% in Q4.
- This contraction cut 1.3 percentage points of overall GDP growth.
- Imports were up 8.1% annually in 2022, outpacing the 7.2% growth seen in exports.
- Retail sales fell by 1% on a monthly basis in December, the second month of declines.
- The U.S. Dollar Index rose 0.5% after the GDP figures were released.
