The revision was primarily due to lower levels of exports and consumer spending
The US Bureau of Economic Analysis has released its third estimate, stating that the country’s real gross domestic product grew at an annual rate of 2.6% in the fourth quarter of 2022, down slightly from the previous estimate of 2.7%. The revision was primarily due to lower levels of exports and consumer spending. The increase in GDP reflected higher levels of private inventory investment, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending, partially offset by a decrease in residential fixed investment and exports. The Wall Street forecasts suggest that the US economy could see a similar growth rate in Q1 2023, as hiring and consumer spending have been stronger than expected, which could ease concerns of a potential recession. In the meantime, imports, which are deducted from GDP calculations, decreased in the fourth quarter. In Q3 2022, GDP growth was 3.2%.