US fourth-quarter GDP revised down

The US economy grew a touch less than previously estimated in the fourth quarter, according to data released on Thursday by the government.

GDP grew at an annual pace of 2.6%, down from a previous estimate of 2.7% and from 3.2% growth in the third quarter.

This was mainly due to downward revisions to exports and consumer spending.

Oxford Economics said: "The slight downward revision to Q4 GDP shows the economy ended 2022 with marginally less momentum. Looking ahead, the economy will face the full brunt of tighter credit conditions and Fed policy this year, and inflation is set to stay above its historical trend.

"The recent banking sector turmoil will affect the economy mainly through tighter lending standards and a reduction in the availability of credit. We expect a recession to hit in the second half of 2023, with a peak-to-trough GDP decline of around 1.5%."