New GDP numbers from the Commerce Department show a remarkable acceleration in economic activity.
The U.S. economy surged ahead with a 6.9% annual growth rate in the final months of 2021 and achieved the strongest growth over an entire calendar year since 1984.New GDP numbers from the Commerce Department show a remarkable acceleration in economic activity, much faster than the 5.3% growth rate analysts expected.accounting for 4.9 percentage points of the gain.
Personal consumption expenditures rose at a 3.3% annual rate, and spending started to rebalance, with services spending rising much faster than durable goods spending . Residential investment actually subtracted from overall G.D.P. for the third straight quarter, despite a booming housing market, reflecting supply strains holding back home construction.While GDP is rising rapidly, it remains about 1% below where the forecasters thought it would be at this point before the pandemic struck. There is still more ground to make up.
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