Due to a decline in home sales and building, that figure fell from 3.2% in the previous quarter. Despite the fact that the labor market has held up, some economists are concerned that the US economy is about to enter a recession. Although the unemployment rate is close to historic lows, the economy as a whole has been deteriorating.
Retail sales in December, which is typically a significant month for consumer spending, fell 1.1% from the previous month. In addition, manufacturing has suffered while the stock market experienced a last year. According to Thursday’s data, housing investment, which is influenced by interest rates, declined at a rate of about 27% annually in the three months leading up to December.
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The US economy’s main engine, consumer spending, nevertheless kept going strong despite slowing down. The economy expanded by 2.1% over the entire year. This was less than the previous year, when the economy sprang back to life following the pandemic, growing at the quickest rate since 1984, 5.9%.
The US central bank intervened to try to stabilize prices as a result of that surge, which also contributed to a sharp jump in prices. The Federal Reserve raised interest rates last year, taking them from almost zero to more than 4%, the highest level in 15 years. In an effort to relieve the pressures driving up prices, the bank is urging customers to save more money and spend less by raising borrowing charges. But it could result in a significant slowdown, which could millions of people will lose their jobs.
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