US Growth Rate at 6.9% In Q4 In 2021
London, Thursday, 27 January 2022 -
In Q4 2021, the American economy grew by an annualized 6.9% quarter over quarter, far higher than the 2.3 percent in Q3 and well over predictions of 5.5 percent. It is the fastest GDP increase in five quarters, with private inventories (4.9 percentage points) accounting for the largest upward contribution, notably motor vehicle dealers, as corporations had been drawing down stocks since the beginning of 2021.
Personal consumption grew by 3.3 percent, boosted by a 4.7 percent growth in service spending, which includes health care, recreation, and transportation. Fixed investment increased by 1.3 percent, with intellectual property items driving the increase, which was somewhat offset by a drop in structures.
Residential investment, on the other hand, continues to fall, falling 0.8 percent. In the meantime, net trade had little impact on growth, as exports increased by 24.5 percent, led by consumer products, industrial supplies, foods, and travel, while imports increased by 17.7 percent. In total, the GDP grew by 5.7 percent in 2021, the most since 1984.
(Source: U.S. Bureau of Economic Analysis)
(Edited by: The Decision Maker)