The Federal Reserve should be pleased with the top-line numbers in Thursday’s fourth-quarter GDP report, which showed the US economy grew a solid 2.9% while its preferred price index slowed to 3.2%. But drill down, and the economy appears to be losing momentum.
Perhaps the best news from the report is that consumer spending continued to grow by a steady 2.1% and account for nearly half of GDP growth. It appears rising interest rates haven’t yet caused consumers to pull back, although the December retail sales report showed a sharp drop in spending and could signal a recession.
opinion | the economy slows down
The Federal Reserve should be pleased with the top-line numbers in Thursday’s fourth-quarter GDP report, which showed the US economy grew a solid 2.9% while its preferred price index slowed to 3.2%. But drill down, and the economy appears to be losing momentum.
Perhaps the best news from the report is that consumer spending continued to grow by a steady 2.1% and account for nearly half of GDP growth. It appears rising interest rates haven’t yet caused consumers to pull back, although the December retail sales report showed a sharp drop in spending and could signal a recession.