The nation’s gross domestic product increased at an annual pace of 3.2%, better than the prior estimate on stronger consumer spending, in the final reading produced by the Bureau of Economic Analysis on Thursday.
The number shows the economy’s resilience heading into the final months of the year, but most economists expect the fourth quarter to show weaker or negative growth as the Federal Reserve’s campaign of higher interest rates takes hold.
“Consumer confidence was much better than expected in the latest release, boosted by lower gasoline prices and falling inflation expectations,” said Bill Adams, chief economist for Comerica Bank. “However, existing home sales surprised to the downside again”
“This is likely to be the broader economy’s trend in 2023: Some relief from the inflation that dogged the US since the pandemic, while economic activity softens further in response to high interest rates,” Adams added.
One area of the economy that is showing surprising strength is the job market, where despite scattered reports of layoffs, analysts say there is still fairly robust demand for workers. Whether that will hold up in the New Year remains to be seen.
R&I – TxPAT
PragDem
Article URL : https://www.usnews.com/news/economy/articles/2022-12-22/3q-gdp-surprises-to-the-upside-on-stronger-consumer-spending