The US economy has shown positive growth in the fourth quarter of 2023, with an annualized rate of 3.4%, surpassing the previously estimated 3.2%. This growth was primarily driven by higher consumer spending and investment estimates.
According to a report from the US Commerce Department, consumer spending and non-residential fixed investment were the main contributors to the economic growth. However, this progress was partly offset by a downward revision in private inventory investment.
The US economy grew at a rate of 2.5% throughout the year 2023, which is an improvement from the 1.9% growth seen in 2022. As per a forecasting model released by the Federal Reserve Bank of Atlanta, the economy is projected to grow at a slower but still respectable rate of 2.1% in the current January-March quarter.
Despite initial concerns of a recession, the US economy has defied expectations, leading to optimism that it may be heading towards a “soft landing” where inflation decreases without causing a harmful recession. The outlook for the economy remains promising as it continues to show signs of stability and growth.