GDP: US economy grows at 3.3% annual pace in fourth quarter, faster than expected

[davidcrb]

https://finance.yahoo.com/news/gdp-...h-quarter-faster-than-expected-133828802.html

The US economy grew at a faster rate than expected in the fourth quarter, capping off a year many expected to end in recession with one final economic surprise.

The Bureau of Economic Analysis's advance estimate of fourth quarter US gross domestic product (GDP) showed the economy grew at an annualized pace of 3.3% during the period, faster than consensus forecasts. Economists surveyed by Bloomberg estimated the US economy grew at an annualized pace of 2% during the period.

The reading came in lower than third quarter GDP, which was revised down to 4.9%. For the year, the US economy grew at an annualized rate of 2.5% up from 1.9% in 2022.

 

[omatt]

@davidcrb Time and time again, nothing gets people upset like good economic news. It truly depends on whether your guy is in the White House

 

[jopa66]

@omatt No, the issue is they've been trying to slow growth and cool the economy by raising interest. I'm cool with a good economy, I'm not cool with everything being expensive and mass layoffs.

 

[germanguy]

@jopa66 Where are there mass layoffs?

 

[jopa66]

@germanguy I live in the Bay area. Everyday is a new round of layoffs

 

[germanguy]

@jopa66 Your uniquely silly location isn’t really a barometer for employment in the country

 

[peaceinthelord]

@jopa66 Mass layoffs? Even in Silicon Valley, the 'mass layoffs' are usually just a few percent of total employees - most of whom are useless marketing/hr flunkies who aren't missed. Real world America has seen big growth in blue collar manufacturing, bringing back jobs from overseas. Also, energy patch has enjoyed big growth as US is now biggest oil producer and LNG exporter in the world.

 

[jopa66]

@peaceinthelord https://www.reddit.com/r/Layoffs/s/UHdEKocpdg

 

[nottoosure]

@davidcrb Soft landing might be happening after all? Last year around this time when recession kept being forecasted, I thought the bizarre part of it was that unemployment was still extremely low, spending was up, supply chains had largely stabilized, and indicators like housing prices were still high (mostly from low inventory I know, but still they haven't dropped either).

I work in tech, so a big change in this last year has been that job postings have largely dried up. I went from multiple recruiters trying to get my attention at the beginning of the year to maybe a lame ping from one at the end of the year. And there have been quite a few high profile layoffs along the way. But it does seem like if you really need a job, even in tech, you can still find one. There's just more work to do. Many of us are still making good salaries, I haven't seen a backslide on pay.

Cautiously optimistic, seems like we're still getting through various ripples caused by going through a global pandemic.

 

[hazarmaveth]

@nottoosure I love the smell of fresh bread.

 

[theresa84]

@hazarmaveth Yeah I just passed my probation at my current job and I have never felt so relieved - for most of my career I never had doubt there was another job waiting for me.

But tbh I think it was overdue. Not that I'm happy about it, but it was getting a bit manic the last couple years, with everybody and their cousin trying to go to a bootcamp and make $250k 6 months later, and every founder with a shitty business model and a half-decent pitch-deck getting funded.

Sucks for the new grads trying to get a foot in the door, but we were due for a correction.

 

[nottoosure]

@theresa84 At least new grads have options right now. When I graduated in 2010 it was so rough for a new grad. No one was hiring, all the old timers were taking up the junior positions. I couldn't even find good temp work most of the time. At one point I was putting stickers on boxes for a temp job just to make rent. One temp job fired me randomly because I texted my mom back on my cell phone while I was at my desk and they considered it totally unprofessional. Ugh, that time was bad.

Really thankful I ended up in tech, its been a great industry to be a part of all things considered. Seems like all of the crappier jobs at like Chipotle or warehouses are paying decent base wages to get folks in now.

 

[rane]

@theresa84

But tbh I think it was overdue. Not that I'm happy about it, but it was getting a bit manic the last couple years, with everybody and their cousin trying to go to a bootcamp and make $250k 6 months later, and every founder with a shitty business model and a half-decent pitch-deck getting funded.

Definitely one of the benefits and downsides of a high rate environment. Now the same folks who traditionally had the capital to provide to these bullshit idea startups are now demanding that said founders be able to demonstrate they can reasonably guarantee returns over/above an elevated risk-free return rate.

So as I was trying to explain to some buds other day, why should I risk giving you X dollars for a potential return of 6-7% a year long term with some risk of going belly up fixed in when I can just park it all in treasuries and corporate bonds for 4-5.5% a year?

 

[dandelion10]

@hazarmaveth The tech unemployment rate hit 2.3 percent in December, lower than the national unemployment rate of 3.7 percent.

 

[rane]

@dandelion10 The layoffs we're hearing about are probably just creating more turbulence in the tech sector. Folks get laid off and they'll find a job months later with maybe a slight paycut.

 

[hazarmaveth]

@rane My favorite movie is Inception.

 

[browneyes27]

@dandelion10 Yeah I’ve seen a lot of people laid off on LinkedIn getting new jobs in 2-3 months. When you factor in a severance package, that’s basically no time at all

 

[thetrek]

@hazarmaveth Anecdotal, but my tech employer recently laid off a dozen or so engineers two months ago and all the ones I kept in touch with have found new gigs by now, even with the holiday slowdown.

 

[gundy22]

@hazarmaveth There’s no tech recession (except for startups). All the major company’s greedy CEO’s/boards decided to “capitalize” on covid growth and over hire. Either they were foolish enough to think it could last forever or they knew that they could make their gains and lay off all the excess later.

 

[tcsmom289]

@nottoosure You mean as so many of us here said it would