After stalling in 3Q21 at 2.3% year-over-year growth US GDP soared to 7% in 4Q21, according to the US Department of Commerce, slight above last month’s advance estimate. On a yearly level real GDP increased 5.7% in 2021.
GDP growth in 4Q21 was driven by increases in inventory investment, exports and consumer spending. Investment in intellectual property products by businesses also added to growth.
Meanwhile federal government spending was down primarily due to a decrease in defense spending. Decreases in state and local government spending followed a decrease in gross investment particularly in new educational structures.
In the same period prices of goods and services purchased by US residents increased 7% in 4Q21.