January 2023

4th Quarter GDP Grew at 2.9% Rate on Increased Inventories, Personal Services, and Government

In current dollars, our fourth quarter GDP grew at a 6.51% annual rate, increasing from what would work out to a $25,723.9 billion annual rate in the 3rd quarter to a $26,132.5 annual rate in the 4th quarter, with the headline 2.9% annualized rate of increase in real output arrived at after annualized inflation adjustments averaging 3.5%, aka the GDP deflator, were computed from the price changes of the GDP components and applied to their current dollar change.