In the fourth quarter of 2023, the US economy experienced an upward revision in Gross Domestic Product (GDP), according to a report released by the Bureau of Economic Analysis on Thursday. This increase was driven by consumer spending, government spending, exports, and fixed investments.
Personal income also saw gains 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, indicating positive growth in corporate profits for the fourth quarter of 2023.
Overall, looking at 2023 as a whole, real gross output increased by 2.1%. Private goods-producing industries up by 2%, private services-producing industries up by 2.1%, and 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%. Additionally, the PCE index excluding food and energy saw an increase of 2.0%, reflecting overall positive trends in the economy for the fourth quarter of 2023.
The BEA’s report highlights that despite global economic challenges such as inflationary pressures and geopolitical tensions, the US economy continues to show resilience and growth potential for
