The U.S. economy is starting out 2023 weaker than expected after the fourth-quarter GDP was revised lower.

Closing Bell

U.S. Economy Beginning 2023 Lower Than Expected

Let's take a look at the business headlines that you need to know right now. So it turns out that the US economy did end 2022 in good shape but it wasn't as strong as many economists initially thought. This suggests that our economy may be starting 2023 weaker than expected. A revised estimate shows fourth quarter GDP increased at an annual rate of 2.7%. That is lower than the first estimate that came out about a month ago. This decline is largely because consumer spending was revised lower now, people kept spending money for a couple of reasons like the persistently strong job market, strong wage growth and signs of cooling inflation. All of this is contributing to this economic momentum. Looking ahead, economists expect economic growth to slow down, possibly even contract.