The economic growth expansion of 6.9% in Q4 in the United States does highlight a robust expansion in the economy, although most of the increases in the economy have been determined by price increases with Inflation. In fact, GDP Sales in Q4 have been 1.5%, thereby the concrete consumer spending in the economy grew only by 1.5%, hinting at the fact that most of the globality of the United States GDP growth has been determined by Higher Prices, factored in the economic growth figures.
GDP Sales figures averaging indicate declining consumer spending and business investment, constrained by High Inflation
Sales of domestic products in the United States grew by 1.5% the quarter in Q4 of 2021, slightly below the second estimate of 2% and following a 0.1% rise in the previous three-month period
Core PCE Prices and PCE Prices Index indicate Inflationary Consumer Spending
The core price index for personal consumption expenditures in the United States, which excludes food and energy, rose by an annualized 5% in the last quarter of 2022, in line with earlier estimates.
The price index for personal consumption expenditures in the United States rose by an annualized 6.4% in the last quarter of 2022, slightly higher than 6.3% in earlier estimates
Real Consumer Spending average 2.5% in line with average growth
Personal consumption expenditure in the United States grew by an annualized 2.5% in the fourth quarter of 2021, slightly below 3.1% in the second estimate. It compares with a 2% increase in the previous quarter which was the lowest since the pandemic recovery started in the third quarter of 2020
The American economy expanded an annualized 6.9% on quarter in the last three months of 2021, 0.1 percentage points lower than in the second estimate. Still, it remains the strongest expansion since a record growth of 33.8% in Q3 2020, with private inventories making the biggest upward contribution (5.32 percentage points vs 4.9 percentage points in the second estimate), led by motor vehicle dealers and wholesale trade industries. Downward revisions to PCE (2.5% vs 3.1% in the second estimate); exports (22.4% vs 23.6%); nonresidential fixed investment (2.9% vs 3.1%), and state and local government spending (-1.6% vs -1.4%) were partly offset by upward revisions to private inventory investment; residential fixed investment (2.2% vs 1%); and federal government spending (-4.3% vs -4.5%). Imports were also revised up (17.9% vs 17.6%). Considering full 2021, the US economy expanded 5.7%.