The following six facts give a snapshot of how the U.S. economy is doing. Economists rely on them to determine the state of the economy because they measure the early influencers of growth.
The unemployment rate has remained low during 2022. The unemployment rate was 3.7% in November 2022. That number was the same as it was in October and is low by historical standards. 1
Real gross domestic product (GDP), often touted as a measure of the overall economy, increased in the fourth quarter of 2022 by 2.9%. Prior to that, GDP had increased by 3.2% in the third quarter after dropping 1.6% and 0.6% respectively in the first and second quarters.2
Orders for durable goods like machinery and equipment increased by 0.5% in the fourth quarter of 2022, while nondurable goods (pharmaceuticals, food, and lodging) rose by 1.5%.3
In December 2022, The Federal Reserve Open Markets Committee increased interest rates by 50 basis points, with a target range of 4.25% to 4.50%.4
The Consumer Price Index decreased by 0.1% from November to December. Prices on all items increased by 6.5% over the last twelve months, the smallest increase since October 2021.5
U.S. Bureau of Labor Statistics. “Consumer Price Index Summary.”
The stock market overall sustained growth during the previous year, but in January 2022 the S&P 500 and Nasdaq dipped significantly, and both indexes were low and erratic into March before regaining ground in April. In June the S&P 500 dipped into a bear market, 20% below its recent peak. By September, the index had gained back some of that ground but was still well below its peak.
