More broadly, the US economy has rebounded after unexpectedly contracting in early 2022. A rise in government spending and a narrowing trade gap, with US retailers importing less and exporting more, helped gross domestic product towards the end of the year.
However, economists warn these gains could be short-lived as large parts of the economy, including housing construction and consumer spending, continue to slow.
“The irony is that when things are actually slowing down, we’re going to see the strongest growth of the year,” Diane Swonk, chief economist at KPMG, said in October after third-quarter GDP results. “There are some real cracks in the foundation. Housing construction is shrinking. The consumer slows down. GDP is growing, but not for the right reasons.”
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