U.S. grew 7% in 4th quarter, GDP shows, but economy enters more uncertain period
The numbers: The U.S. economy grew at slightly faster 7% annual pace in the fourth quarter, updated figures show, as Americans boosted spending and businesses rebuilt their stockpile of goods after inventories fell to very low levels.
Economists polled by The Wall Street Journal had forecast gross domestic product in the fourth quarter to be revised up to 7%. GDP grew a slower 2.3% in the third quarter.
The surge in the U.S. economy at the end of last year hasn’t carried over into 2022, however. Omicron blitzed the U.S. in January and consumers cut back. The U.S. is forecast to expand by less than 2% in the first quarter.
The figures are adjusted for inflation.
Big picture: The U.S. economy appears to have entered a more turbulent period after a speedy recovery from the pandemic.
The cost of borrowing is climbing as the Federal Reserve prepares to raise interest rates for the first time…
