U.S. real gross domestic product (GDP) increased at an annual rate of 2.7% in the Q4 2022, according to the "second" estimate released by the Bureau of Economic Analysis. In the Q3, real GDP increased 3.2%.
The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 2.9%. The updated estimates primarily reflected a downward revision to consumer spending that was partly offset by an upward revision to nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, were revised up.
The increase in real GDP in the Q4 reflected increases in private inventory investment, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending that were partly offset by decreases in residential fixed investment and exports. Imports decreased.
Current‑dollar GDP increased 6.7% at an annual rate, or $421.1 billion, in the Q4 to a level of $26.15 trillion, an upward revision of 0.2 percentage point, or $12.5 billion, from the previous estimate.
The price index for gross domestic purchases increased 3.6% in Q4, an upward revision of 0.4 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.7%, an upward revision of 0.5 percentage point. Excluding food and energy prices, the PCE price index increased 4.3%, an upward revision of 0.4 percentage point.
GDP for 2022
Real GDP increased 2.1% in 2022 (from the 2021 annual level to the 2022 annual level), compared with an increase of 5.9% in 2021. The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports, private inventory investment, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment and federal government spending. Imports increased.
Current-dollar GDP increased 9.2%, or $2.15 trillion, in 2022 to a level of $25.46 trillion, compared with an increase of 10.7%, or $2.25 trillion, in 2021.
The price index for gross domestic purchases increased 6.8% in 2022, compared with an increase of 4.2% in 2021. The PCE price index increased 6.3%, compared with an increase of 4.0%. Excluding food and energy prices, the PCE price index increased 5.0%, compared with an increase of 3.5%.
Measured from the Q4 2021 to the Q4 2022, real GDP increased 0.9% during the period, compared with an increase of 5.7% from the Q4 2020 to the Q4 2021.
The price index for gross domestic purchases, as measured from the Q4 2021 to the Q4 2022, increased 6.2%, compared with an increase of 5.8% from the Q4 2020 to the Q4 2021. The PCE price index increased 5.7%, the same increase as from the Q4 2020 to the Q4 2021. Excluding food and energy, the PCE price index increased 4.8%, compared with an increase of 4.7%.
