U.S. GDP rose 2.9% in the fourth quarter, more than expected even as recession fears loom

The U.S. economy finished 2022 in solid shape even as questions persist over whether growth will turn negative in the year ahead.

Fourth-quarter gross domestic product, the sum of all goods and services produced for the October-to-December period, rose at a 2.9% annualized pace, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had expected a reading of 2.8%.

Quarterly growth was slightly slower than the 3.2% pace in the third quarter.

Consumer spending rose 2.1% for the period, down slightly from 2.3% in the previous period but still positive.

Inflation readings moved considerably lower. The personal consumption expenditures price index increased 3.2%, in line with expectations but down sharply from 4.8% in the third quarter. Excluding food and energy, the chain-weighted index rose 3.9, down from 4.7%.

Recession canceled?