the numbers the us economy grew at slightly faster 7 annual pace in the fourth quarter updated figures show as americans boosted spending and businesses rebuilt their stockpile of goods after inventories fell to very low levels economists polled by the wall street journal had forecast gross domestic product in the fourth quarter to be revised up to 7 gdp grew a slower 23 in the third quarter the surge in the us economy at the end of last year hasn’t carried over into 2022 however omicron blitzed the us in january and consumers cut back the us is forecast to expand by less than 2 in the first quarter the figures are adjusted for inflation big picture the us economy appears to have entered a more turbulent period after a speedy recovery from the pandemic the cost of borrowing is climbing as the federal reserve prepares to raise interest rates for the first time in four years inflation has soared to a 40year high and ongoing shortages of labor and supplies have handcuffed the ability of businesses to produce enough goods and services to meet customer demand if that’s not all the russian invasion of ukraine has unsettled financial markets and is pushing already high oil prices even higher most economists predict the us will still grow a healthy 3 to 4 in 2022 but the outlook has become more uncertain key details consumer spending the main engine of the economy increased at a revised 31 rate in the first quarter previously the government said outlays rose 33 the value of inventories surged by a revised 238 billion just a toucher lower than previously estimated spending on inventories is a boost to gdp those were the two biggest contributors to us economic growth at the end of last year the government updates gdp twice after the initial report the most notable change in fourthquarter gdp was a somewhat larger increase in business investment especially housing residential spending rose 1 instead of declining 08 as initially reported the increase in outlays on equipment was also raised to 31 from 2 most other figures were little changed government spending fell and the rate of inflation also rose at the fastest pace since 1982 for all of 2022 gdp increased by 57 that’s the largest gain since 1984 before the pandemic the economy was growing around 23 a year market reaction the dow jones industrial average djia and sp 500 spx were set to decline sharply in premarket trades after russia launched a fullscale attack on ukraine