America’s annual growth rate increased by 2.9 percent in the third quarter amid a slowdown in the economy
[ad_1]
Washington: America’s economic growth rate was 2.9 percent on an annual basis in the October-December quarter this year. This growth rate has happened when the economy is under pressure due to the increase in the interest rate and experts are expressing apprehensions about the recession. According to the data released by the US Department of Commerce, the country’s gross domestic product (GDP) growth rate stood at 2.9 percent. However, this is lower than the 3.2 per cent in the July-September quarter of the previous quarter.
Economy likely to slow down in current quarter
Most economists expect the economy to slow further in the current quarter and enter at least a mild recession by the middle of the year. The economy got a boost in the last quarter due to increase in consumer spending and stockpiling of goods by traders. Government spending also helped push up GDP.
Private investment registered an increase in GDP
According to media reports, the US real gross domestic product (GDP) grew at an annual rate of 2.9 per cent in the last quarter of 2022. In the third quarter, an increase of 3.2 percent was recorded in the gross domestic product of America. According to the US Department of Commerce, this increase in real GDP reflects increases in private inventory investment, consumer spending, federal government spending, state and local government spending, and non-residential fixed investment, partly due to residential fixed investment and exports. Were lying lethargic due to deficiency. However, in the meantime, a decline has been registered in the country’s imports as compared to GDP.
We are moving in the right direction: Joe Biden
The US Department of Commerce said the increase in private inventory investment was led by manufacturing (primarily petroleum and coal products as well as chemicals) along with the mining, utilities and construction industries. According to the Bureau of Economic Analysis, growth in consumer spending is reflected in both services and goods. US President Joe Biden said about Thursday’s GDP report that the news could not have been better. We are moving in the right direction. Now, we have to protect those gains.
Increase in non-defense spending of the government
Within services, the increase was led by health care, housing and utilities and other services, according to the US Department of Commerce. Motor vehicles and components are the leading contributor to commodities. According to the Commerce Department, the increase in federal government spending is due to non-defense spending. At the same time, according to the report of the Bureau of Economic Analysis, the increase in state and local government spending mainly reflects the increase in compensation of state and local government employees. Within non-residential fixed investments, growth in intellectual property products was partially offset by a decrease in equipment.
[ad_2]
Source link
