Fourth-quarter gross domestic product, the sum of all goods and services produced for the October-to-December period, rose at a 2.9% annualized pace, the Commerce Department reported Thursday.

A 26.7% plunge in residential fixed investment, reflecting a sharp slide in housing, served as a drag on the growth number, as did a 1.3% decline in exports.

"The mix of growth was discouraging, and the monthly data suggest the economy lost momentum as the fourth quarter went on," wrote Andrew Hunter, senior U.S. economist for Capital Economics.

Following a 2021 that saw GDP rise at its strongest pace since 1984, the first two quarters of 2022 started off with negative growth, matching a commonly held definition of a recession.

"Held aloft by resilient consumer spending, the economy expanded at a solid pace late last year, but remains vulnerable to a more pronounced slowdown in the coming quarters."

A series of aggressive Fed interest rate increases aimed at taming runaway inflation are expected to come to roost this year.