US GDP Data: World's largest economy grew 2.7% in December quarter, 2.1% in 2022

US GDP Data: The world's largest economy expanded at an annual pace of 2.7 per cent in the final quarter of 2022, according to an official estimate released on Thursday, slower than 2.9 per cent in the previous three months. Thursday's estimate, a second one, was 20 bps lower than the earlier projection.

The US GDP reading for the October-December period of last year comes at a time when major central banks such as the Fed have the Herculean task of controlling inflation without hurting economic growth.

The US GDP estimate also fell of economists' estimates. Economists in a Reuters poll had estimated the expansion in the quarter ended December 2022 at 2.9 per cent.   

The United States' real GDP grew 2.1 percent in 2022 as against 5.9 percent the previous year, according to an official statement. 

Separate data showed a slide in jobless claims, suggesting tight conditions in the labour market.

The GDP and joblessness data supported optimism about more of smaller rate hikes to tame red-hot consumer inflation.

The three main Wall Street indices — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — finished a choppy session in the green after the release of data, with the S&P 500 halting a four-session losing streak.

Here's how Dow Jones, S&P 500 and the tech stocks-heavy Nasdaq Composite fared on Thursday after US GDP data

• Dow Jones Industrial Average: up 0.3 per cent
• S&P 500: up 0.5 per cent
• Nasdaq Composite: up 0.7 per cent

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