MarketWatch (02/23/23) Bartash, Jeffry

The economy grew a bit slower at a 2.7% annual pace at the end of 2022, revised government figures show, primarily because consumers reduced their spending. The rise in gross domestic product was lowered from an initial 2.9% growth rate. Consumer spending, the main driver of the economy, grew at a 1.4% annual rate instead of 2.1% as originally reported, which mostly explained the downgrade in GDP.

The slowdown in spending suggests 2023 got off to a tepid start. Economists say the U.S. will be hard-pressed to match even the modest performance of the fourth quarter in the first quarter of 2023. Early economic data indicate the country could expand at a far slower pace or even contract. However, consumers still are spending sufficient money to keep the economy afloat, even at the softer fourth-quarter rate. They’ve been helped by the job security deriving from the tightest labor market in modern times. The unemployment rate is near a 54-year low of 3.4%.

This article originally appeared on marketwatch.com. Use this link to see the full article: Economy grew at slower-than-reported pace of 2.7% at end of 2022, GDP shows, as consumers trimmed spending