The Latest GDP Numbers: A Mixed Review of the US Economy’s Fourth Quarter Performance

The latest GDP numbers show that the US economy experienced growth in the fourth quarter, with an increase of 3.4 percent. While this was slightly below the anticipated growth of 4.9 percent, it still surpassed expectations of 3.2 percent. In addition, adjusted profits after taxes reached a new record high of $2.8 trillion, seeing a 3.9 percent increase, which was also above expectations.

Corporate profits spiked in the fourth quarter, with before-tax corporate profits reaching a new all-time high. This increase was due to increased productivity balancing out unit labor costs, resulting in profit margins expanding for the second quarter in a row. The inflation rate dropped to 2 percent in the fourth quarter based on the “core” PCE price index, which excludes food and energy prices – the preferred inflation measure by the Federal Reserve.

Market analysts were pleased with these latest GDP figures, with Michelle Cluver, head of ETF portfolios at Global X, highlighting the U