The number of unemployed also rose less than experts had expected.
(Photo: Reuters)
Washington The US economy grew faster in the third quarter than previously assumed. The gross domestic product increased by 3.2 percent for the year, as announced by the Department of Commerce in Washington on Thursday. Before that, only an increase of 2.9 percent had been expected. In the second quarter, the world’s largest economy even shrank by 0.6 percent.
US growth numbers are annualized. They are therefore not directly comparable with data from Europe. To approximate a growth rate comparable to Europe, you would have to divide the US rate by four.
Despite increasing fears of a recession and a slump in the real estate market, robust growth is again expected for the fourth quarter that is drawing to a close. Economists surveyed by the Reuters news agency predict an increase of 2.7 percent. The guarantors for the upswing are the consumers, who are likely to have increased their consumption despite the high inflation – not least because of the savings accumulated during the pandemic.
US consumer sentiment improved unexpectedly at the end of the year as inflation eased. The Consumer Sentiment Barometer rose to 108.3 points in December from a revised 101.4 in November, the institute’s Conference Board said on its survey. This is the best value since April.
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The reason for the improved consumer sentiment is evidence of an abating of high inflation. The inflation rate for goods and services fell to an annual low of 7.1 percent in November.
Unemployment is rising less than expected
According to the survey, the willingness to buy houses and large appliances continued to decrease. This is probably due to the sharp interest rate hikes by the US Federal Reserve, which, for example, have caused mortgage interest rates to skyrocket.
The Fed recently raised interest rates by half a percentage point to the new range of 4.25 to 4.50 percent. Previously, it had made even larger interest rate hikes four times in a row – by 0.75 percentage points each time.
The number of weekly initial jobless claims in the US rose less than expected. Their number increased by 2000 to 216,000, the Department of Labor announced on Thursday in Washington. Analysts had expected 222,000.
The level of requests for assistance suggests that the labor market will remain robust. The initial applications for unemployment benefits are considered an indicator of the short-term development of the labor market. Despite a weaker economy in the USA, many companies are complaining about a shortage of workers. The most recent labor market report also indicated continued strength in the job market.
More: “We still have a lot to do”: US Federal Reserve expects key interest rate of over five percent