The U.S. economy experienced even more growth in the fourth quarter of 2023 than previously reported, according to the Bureau of Economic Analysis. The Gross Domestic Product (GDP) was revised up to an annual rate of 3.4%, with personal income also increasing by $230.2 billion, $10.7 billion higher than the initial estimate. Real GDP growth, adjusted for inflation, was at 3.2%, showing a positive trend in economic performance.
The increase in GDP was primarily driven by rises in consumer spending, government spending, exports, and fixed investments. This upturn in economic output indicates a growing economy with positive prospects for the future. Even before this upward revision, the previous estimate of a 2.5% GDP rise for the fourth quarter of 2023 exceeded economic expectations.
In addition to the GDP growth, personal saving experienced an increase, reaching $815.5 billion, with a saving rate of 4.0%. Domestic U.S. corporate profits also saw a significant increase, rising by $5.9 billion compared to the previous quarter. Real gross output for 2023 as a whole increased by 2.1%, showing growth across private goods-producing industries, private services-producing industries, and government sectors.
Prices also showed an upward trend, with the price index for gross domestic purchases increasing by 1.9% in the fourth quarter. The Personal Consumption Expenditures (PCE) index increased by 1.8%, with the PCE index excluding food and energy rising by 2.0%. Overall, the economic report indicates a positive trajectory for the U.S. economy, with growth across various sectors contributing to improved economic performance.