US economic growth likely slowed at the end of 2023
'The Claman Countdown' panelists Simeon Hyman and John Lonski break down the Federal Reserve's favorite inflation number.
The U.S. economy likely ended 2023 on solid footing, but momentum is expected to have cooled from earlier in the year as consumers battle high inflation and interest rates.
Economists expect the Commerce Department's first reading of gross domestic product, the broadest measure of goods and services produced in the country, to show the economy expanded by 2% on an annualized basis in the three-month period from October through December.
That would mark a sharp decline from the 4.9% figure reported in the third quarter.
«Incoming data continue to point to a resilient, but cooling, U.S. economy, led by consumer spending on the back of a tight labor market, higher-than-expected holiday spending and moderately strong balance sheets,» Bank of America analysts wrote in a note to clients regarding the upcoming GDP release.
WHEN WILL THE FEDERAL RESERVE START TO CUT INTEREST RATES?
A worker grinds a weld on a safe being manufactured at Liberty Safe Company March 22, 2022, in Payson, Utah. (George Frey/Getty Images / Getty Images)
The Bank of America strategists anticipate that non-consumer spending slowed down from the third quarter with subdued growth in non-residential business fixed investment. Housing also likely posted a «minor increase at best» amid ongoing headwinds from high mortgage rates, low inventory and a lack of affordability.
The economy has proven surprisingly resilient even as the experts predicted the Federal Reserve's aggressive interest rate hike campaign would send it spiraling into a recession. However, there are signs it is finally beginning to slow in the face of tighter monetary
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