the numbers the economy grew a touch slower at a 27 annual pace at the end of 2022 revised government figures show largely because consumers cut back on spending the increase in gross domestic product the official scorecard of the economy was lowered from an initial 29 growth rate consumer spending the main engine of the economy grew at a 14 annual clip instead of 21 as originally reported that mostly explained the downgrade in gdp the slowdown in spending suggests the new year got off to a weak start economists say the us will will be hardpressed to match even the modest performance of the fourth quarter in the first three months of 2023 early economic data indicate the us is on track to expand at a far slower pace or even contract rising interest rates and high inflation have forced consumers and businesses to trim spending and investment most notably in interestsensitive sectors such as housing and construction big picture the us was widely expected to slip into recession in 2023 as the federal reserve tightened the screws the fed plans to keep raising interest rates to snuff out inflation putting an expansion that began in mid2020 at risk consumers are still spending enough money to keep the economy afloat though even at the softer fourthquarter rate they’ve been aided by the job security resulting from the tightest labor market in modern times the unemployment rate stands near a 54year low of 34 many companies are still hiring meanwhile and others are reluctant to lay off workers given how hard it was to recruit them in the first place now more forecasters think the fed might achieve a socalled soft landing taming inflation without a recession market reaction the dow jones industrial average djia and sp 500 spx were set to open higher on thursday the yield on the 10year treasury note tmubmusd10y rose slightly to 396