Consumer spending accounts for more than two-thirds of U.S. economic activity. it grew at a 2.1 percent rate, also slower than the previous quarter.
half of the boost to growth in the fourth quarter came from a sharp rise in inventory held by businesses. though, some of that inventory could be unwanted stock.
but Stripping out inventories, government spending, and trade, domestic demand only increased at only a 0.2 percent. rate. this is , the smallest increase in private domestic final sales since the second quarter of 2020. this is also lower than the third quarter’s 1.1 percent.
Most economists expect a recession by the second half of this year — but a mild one due to labor market strength.