U.S. Economy Surpasses Growth Forecasts in Fourth Quarter of 2023: GDP Revised to 3.4%

The U.S. economy saw further growth in the fourth quarter of 2023 than previously reported, according to a new report from the Bureau of Economic Analysis released on Thursday. The Gross Domestic Product (GDP) was revised up to an annual rate of 3.4%, while personal income increased by $230.2 billion in the fourth quarter, up $10.7 billion from the previous estimate.

The real GDP, adjusted for inflation, increased by 3.2%, thanks to upward revisions in consumer spending and nonresidential fixed investment, although private inventory investment saw a slight downward revision. Driving the increase in real economic output were consumer spending, government spending, exports, and fixed investments.

In addition to this growth, personal saving also increased by $6.3 billion to $815.5 billion and the savings rate climbed by one percent to 4%. Moreover, domestic U.S. corporate profits grew by $5.9 billion compared to a $9 billion rise in profits for the third quarter of 2023.

For the entire year of 2023, the real gross output increased by 2.1%, private goods-producing industries grew by 2%, private services-producing industries increased by 2