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Worker positions a dumpster at a construction site in Miami
Photo: Lynne Sladky/AP
Despite high inflation and rising interest rates, the US economy grew relatively strongly before the turn of the year.
The gross domestic product (GDP) increased by 2.9 percent on the year from October to December, as announced by the Ministry of Commerce based on preliminary figures.
Experts surveyed by Reuters had only expected an increase of 2.6 percent.
In the summer of 2022, the economy grew by 3.2 percent.
Consumers increased their spending by 2.1 percent in the fourth quarter, after 2.3 percent in the summer.
Meanwhile, companies increased their investments, but not as much as in the summer.
And exports fell 1.3 percent after a strong 14.6 percent gain in the third quarter.
US Federal Reserve Vice Chair Lael Brainard believes a recession could be avoided.
However, data pointed to subdued economic growth this year.
These included a significant slowdown in the industrial sector and subdued consumption.
The rising interest rates have also added to the real estate industry.
In view of the wave of inflation that has now subsided, the financial markets are expecting the Fed to raise the key interest rate by just a quarter of a percentage point next Wednesday.
The current key interest rate has been in a range between 4.25 and 4.5 percent since the most recent increase of half a percentage point in December.
ani/Reuters
