The U.S. economy ended last year with stronger growth than previously thought, with GDP growing at a 3.4 percent annualized rate in the final quarter of 2023. Consumer spending also rose at a faster pace of 3.3 percent. Inflation remained stable, and Gross Domestic Income increased by 4.8 percent.
Key Points
GDP grew at a 3.4 percent annualized rate in Q4 2023
Consumer spending increased by 3.3 percent
Gross Domestic Income rose by 4.8 percent
Economic growth driven by various factors including consumer spending and government spending
Pros
Stronger-than-expected economic growth in the U.S.
Increase in consumer spending and nonresidential fixed investment
Stable inflation rates
Cons
Downward revision in core PCE inflation from the previous estimate