• Gross domestic product (GDP) grew at a 2.7% annual rate in Q4 2022, down from a previous estimate of 2.9% growth, primarily due to slower consumer spending late last year than previously estimated.
• Recent economic data shows a strong labor market, improved spending, and business activity, particularly in the services sector, picked up in February, according to surveys of manufacturers and service providers.
• Inflation was revised higher in the fourth quarter. The personal-consumption expenditures price index (PCE), the Fed’s preferred gauge, advanced at a seasonally adjusted annual rate of 3.7% from the prior quarter. The Fed targets a 2% inflation rate.
• Forecasting firm S&P Global Market Intelligence estimated GDP would contract at a 0.5% rate in the first three months of the year. The firm projects GDP to increase 0.7% for all of 2023. The Federal Reserve expects to keep raising rates this year.

• The US government has proposed a rule requiring federal contractors to report on greenhouse gas emissions and climate-related financial risks.
• Contractors with annual revenue exceeding $50 million would have to set science-based targets to reduce emissions to be eligible for federal contracts.
• Business trade groups have opposed the rule, citing concerns over costs and regulatory burden, while environmental groups have praised it as a way to mitigate climate change.
• The Federal Acquisition Regulation (FAR) Council will consider comments before issuing the final rule, but its timeline for being issued is unclear.

Geosyntec Consultants, Inc. (Geosyntec), a Florida-based consulting and engineering firm working with private and public sector clients to address problems involving the environment, natural resources, and civil infrastructure, has acquired Geoscience and Marine Services, Inc. (GEMS), a Texas-based consulting company specializing in marine geology/geophysics, geotechnical engineering, and marine archaeology. The acquisition of GEMS will allow Geosyntec to assist oil, gas, and offshore wind clients by providing the geoscience and engineering expertise they need to successfully complete their projects, many of which contribute to the transition to renewable energy.

NV5 Global, Inc. (NV5), a Florida-based provider of technology, conformity assessment, and consulting solutions, has acquired Diversified Consulting Solutions (DCS), a Colorado-based provider of owner representation and program management consulting services for municipalities and the K-12 and higher education markets. The acquisition of DCS will support NV5's growth objectives, specifically within its owner representation group and its operating footprint in the Mountain West region. Dickerson Wright, PE, Chairman and CEO of NV5, stated, "Growth of our owner representation group will continue to be an area of focus within NV5, and we anticipate further expansion of this high margin, high barrier-to-entry service offering."

KCI Technologies, Inc. (KCI), a Maryland-based engineering, consulting and construction firm, has acquired Armeni Consulting Services, LLC (Armeni Consulting Services), a Georgia-based consulting firm providing a full range of estimating, scheduling and constructability analysis for all types of bridges and heavy-civil infrastructure projects. The addition of Armeni Consulting Services will further enhance the capabilities and resources KCI provides for complex bridge and heavy-civil infrastructure projects.

Jensen Hughes, Inc. (Jensen Hughes), a Maryland-based fire protection and life safety engineering and consulting services firm and portfolio company of Gryphon Investors, has acquired BRANDGRUPPEN, a Denmark-based specialist fire engineering consultancy. The acquisition of BRANDGRUPPEN marks the company's first entry into the Danish market, where recent certification changes are expected to drive growth in the fire engineering industry. "The BRANDGRUPPEN focus on people, culture, performance and commitment to technical excellence and exceptional client service made this acquisition an easy decision. We are delighted to welcome this dynamic, specialist company to our team and we are excited to tap into Denmark's high growth fire engineering market," said Maurice Conroy, SVP of Corporate Development at Jensen Hughes.

NV5 Global, Inc. (NV5), a Florida-based provider of technology, conformity assessment, and consulting solutions, has acquired Axim Geospatial (Axim), a Wisconsin-based provider of end-to-end geospatial services and solutions throughout the U.S., whose core competencies include big data services, geomatics, business solutions, cloud services, infrastructure security, analytics, and professional services. The acquisition of Axim expands NV5’s capabilities in the federal defense and intelligence sectors and strengthens NV5’s position in geospatial utility solutions. Axim’s enterprise geographic information systems (GIS) to enhance also NV5’s GIS capabilities through cloud-managed services, delivering secure and scalable offerings to meet the growing need for GIS data and analytics.