The strength of consumption for the US economy through the GDP report

US Q4/2022 GDP growth showed a strong US economy in the face of inflation and high interest rates. A notable point in the final 2022 GDP report is that the US economy was carried by consumer strength and inventory levels. 

Although consumption is one of the two most important components of the economy, the structure of this consumption growth is quite concerning as durable goods consumption continues to show a clear downward trend. In particular, the other driver of the economy, investment, continues to contract.

In addition, despite a fairly optimistic GDP report, economic activities such as retail sales and economic indicators show a US economy that is gradually weakening.

This week's macroeconomics column from Viet Hustler will provide readers with detailed analyses of the consumer strength of the US economy and its impact on Q4/2022 GDP growth. 

Analysis of US Q4/2022 GDP growth