An article that I find talks about the growth of the US economy in the fourth quarter. The growth and consumer spending both trended down in the fourth quarter. The article states, “In the Commerce Department’s first two reads of fourth-quarter GDP, the growth was initially estimated at 2.9%, then revised down last month to 2.7%. Concurrently, consumer spending trended down as well, decreasing from 2.1% in the first read to 1.4% in the second revision and landing at 1% in the final print, released Thursday morning.”(CNN). This decrease in consumer spending and growth mainly had to do with local government spending, and improvements in non-residential areas. Overall, this article talks about the drop in consumer spending and growth compared to other years and what that looks like for the future of the US economy.
Article: https://www.cnn.com/2023/03/30/economy/us-gdp-4q-final/index.html
2 comments:
Overall, great article! I think it is interesting to see how much revision was taken to the figures this quarter!
This is really concerning news because it is standard that the fourth quarter is the most productive and economically booming quarter of the year across the globe. The idea that there was a drop in consumer demand in spending in the fourth quarter is a clear reflection of how inflation and current hikes in the interest rate or negatively affecting consumers. I understand that it is the goal of the federal reserve to cool down Inflation and to increase the unemployment rate, so I think they need to recognize that their decisions are working, because consumers are responding to increase levels of inflation.
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