The U.S. economy saw an upward revision in the fourth quarter of 2023, according to a report released by the Bureau of Economic Analysis on Thursday. Gross Domestic Product was revised up to an annual rate of 3.4%, reflecting an increase in real GDP of 3.2%. This update was driven by consumer spending increases, government spending, exports, and fixed investments.
Personal income also saw gains, increasing by $230.2 billion in the fourth quarter, with personal savings growing by $6.3 billion to $815.5 billion. The saving rate climbed to 4.0%, reflecting positive trends in personal income and savings. Domestic U.S. corporate profits increased by $5.9 billion, compared to a $9 billion rise in the third quarter of 2023.
In terms of overall economic trends for 2023, the BEA reported that real gross output increased by 2.1%, with private goods-producing industries up by 2% and private services-producing industries up by 2.1%. Government output also saw an increase of 2.2%. Prices also saw an increase, with the price index for gross domestic purchases up by 1.9% and personal consumption expenditures increasing by 1.8%.
Looking at specific indicators for the fourth quarter of 2023, the PCE index excluding food and energy saw an increase of 2