U.S. economic growth quickened last quarter with inventory boost
BNN Bloomberg
U.S. economic growth accelerated by more than forecast in the fourth quarter, fueled by the rebuilding of inventories and capping the strongest year since the 1980s.
U.S. economic growth accelerated by more than forecast in the fourth quarter, fueled by the rebuilding of inventories and capping the strongest year since the 1980s.
Gross domestic product expanded at a 6.9 per cent annualized rate following a 2.3 per cent pace in the third quarter, the Commerce Department’s preliminary estimate showed Thursday. That was the strongest quarterly growth in over a year.
The median forecast in a Bloomberg survey of economists called for a 5.5 per cent increase in GDP.
The personal consumption expenditures price index excluding food and energy, an inflation measure followed closely by Federal Reserve officials, grew an annualized 4.9 per cent last quarter.
Inventories, which added 4.9 percentage points to GDP growth last quarter, are expected to remain a tailwind for economic growth this year. Faced with persistent supply shortages, businesses had been relying on inventories to keep up with the robust merchandise demand seen throughout 2021. Companies are now beginning to restock, which will help bolster production.
