Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product decelerated last quarter.
Washington — The U.S. economy expanded at a 2.9% annual pace from October through December, ending 2022 with momentum despite the pressure of high interest rates and widespread fears of a looming recession.
Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of economic output — decelerated last quarter from the 3.2% annual growth rate it had posted from July through September. Most economists think the economy will slow further in the current quarter and slide into at least a mild recession by midyear.
The housing market, which is especially vulnerable to higher loan rates, has already been badly bruised: Sales of existing homes have dropped for 11 straight months.
And consumer spending, which fuels roughly 70% of the entire economy, is likely to soften in the months ahead, along with the still-resilient job market.
The economy’s expected slowdown is an intended consequence of the Federal Reserve’s aggressive series of rate hikes.
