Economic Boost: US GDP Growth Surpasses Expectations in Fourth Quarter of 2023

The U.S. economy experienced a positive revision to its Gross Domestic Product (GDP) growth in the fourth quarter of 2023, according to a report from the Bureau of Economic Analysis released on Thursday. The real GDP increased by 3.2%, an upward revision from the previously reported annual rate of 2.1%.

The increase in real economic output was primarily driven by consumer spending, government spending, exports, and fixed investments. While private inventory investment saw a slight downward revision, personal income also experienced growth, with an increase of $6.3 billion to $815.5 billion compared to the previous estimate of $10.7 billion.

Domestic U.S. corporate profits also showed growth, rising by $5.9 billion compared to the third quarter’s rise of $9 billion in profits for 2023. Additionally, personal savings increased by $6.3 billion to $815.5 billion, while the savings rate climbed by one percent to 4%.

For the entire year of 2023, private goods-producing industries grew by 2%, private services-producing industries increased by 2%, and government increased by 2%. A total of 17 out of the 22 industry groups contributed positively to the increase in real gross output for the year.

In terms of prices, both the price index for gross domestic purchases and personal consumption expenditures (PCE) went up in the fourth quarter – at rates of 1