The U.S. economic growth in the fourth quarter was revised lower primarily reflecting downward revision in consumer spending partly offset by upward revision to nonresidential fixed investments.
The housing starts and permits declined in January from the previous year and new home construction declined for the fifth month in a row. Home completions rose from a year ago, despite the weak housing market conditions.
The rebound in gasoline price contributed to the acceleration in wholesale price increase in January. Home prices also continued to rise at an elevated pace in the month.
The Consumer Price Index in January moderated from December but accelerated from the previous month. The index excluding food and energy also eased on an annual basis but matched the rate in the previous month.
U.S. international trade deficit soared to a record level after the goods deficit surged and service surplus decreased. Higher demand and soaring energy imports and goods from China drove the deficit higher.
Non-farm payrolls in January expanded after the hospitality and leisure industry and professional business services added jobs at elevated rates. Monthly wage growth rate was steady for the second month in a row.
The Federal Reserve slowed rate hike and warned of more increases to follow as policy makers struggle to engineer soft landing without pushing the economy into a deep recession.
Home sales recovered for the third month in a row in December but plunged in 2022 after high mortgage rates and record home prices lowered affordability for many first-time home buyers.
The U.S. economic expansion slowed in the final quarter but resilient consumer spending and business investments delivered stronger than expected growth.
Durable goods orders soared in December after volatile transportation and defense orders rose. Manufactured durable goods shipment increased in December, up nineteen of the last twenty months.
Despite the drumbeat of layoffs from large tech companies, overall jobs market conditions remain tight. Jobless claims dropped to the lowest level in nine months.
Housing starts and completions are negatively impacted by the rising mortgage rates and record home prices. Residential construction permits and starts declined but completions rose from a year ago in December.
Retail sales unadjusted for price inflation declined in December from November but rose from a year ago. The three-month sales to December reflected tight household budgets.
