Posted January 25, 2024
The U.S. economy accelerated beyond the initial prediction for capping 2023 as gross domestic product increases at a 3.3 percent annualized rate.
GDP, a measure of all the goods and services produced in the U.S., increased at a 3.3 percent annualized rate in the fourth quarter of 2023, according to the Commerce Department. Real GDP increased 4.9 percent in the third quarter.
The rate was beyond the initial prediction from Wall Street, which had estimated only a 2 percent increase.
In 2023 the U.S. economy accelerated at a 2.5 percent annualized rate. The economy increased at a 1.9 percent rate in 2022.
The deceleration in real GDP in the fourth quarter primarily reflected slowdowns in private inventory investment, federal government spending, residential fixed investment, and consumer spending, according to a release from the Bureau of Economic Analysis.
In terms of personal income, the PCE price index increased 2.7 percent, down from the 5.9 percent rate in 2022. Excluding food and energy, the PCE price index increased by 3.2 percent, compared to last year’s 5.1 percent.