Real GDP increased at a seasonally adjusted annual rate of 2.9% during the fourth quarter of 2022, according to the “advance” estimate from the Bureau of Economic Analysis. Real GDP increased by 3.2% in the third quarter of 2022.
The GDP estimate released today is based on source data that is incomplete or subject to further review by the source agency.
Real GDP growth in the fourth quarter reflected increases in private inventory investment, consumer spending, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, decreased.
Consumption added 1.42 percentage points (pp) to growth; this follows a 1.54 pp addition during the fourth quarter of 2022. The increase in PCE was driven by services (led by healthcare and housing and utilities) offset by decreases in other durable goods, recreational goods and vehicles. Inventories increased, adding 1.46 pp of GDP. Residential investment subtracts a total of 1.29 pp from GDP.
Business investment added 0.09 pp to GDP. Investment in intellectual property added 0.28 pp to GDP while investment in structures subtracted 0.01 pp.
Public spending increased, adding 0.64 pp to GDP. The federal and state-local governments added 0.39 and 0.25 pp to GDP, respectively.
read the BEA launching.
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