Revised Fourth Quarter 2023 GDP Figures Show Stronger US Economy than Previously Estimated
In the fourth quarter of 2023, the US economy experienced a higher growth rate than previously reported, with Gross Domestic Product (GDP) increasing by an annual rate of 3.4% according to the Bureau of Economic Analysis. Personal income also saw a significant increase of $230.2 billion, up $10.7 billion from the initial estimate. The revision was primarily due to upward revisions in consumer spending and nonresidential fixed investments, although private inventory investments decreased slightly.
The increase in real GDP, adjusted for inflation, was recorded at 3.2%, which surpassed expectations for the fourth quarter of 2023. Factors driving this growth included consumer spending, government spending, exports, and fixed investments. U.S. corporate profits also rose by $5.9 billion compared to a $9 billion increase seen in profits during the third quarter of 2023.
Moreover, the Bureau of Economic Analysis reported increases in real gross output across various sectors in 2023, including private goods and services-producing industries and government output. Seventeen out of twenty-two industry groups contributed to the rise in real gross output in different sectors during the year. The PCE index excluding food and energy saw a significant increase of 2%, while price indices for gross domestic purchases and personal consumption expenditures also rose by 1.9% and 1.8% respectively during the fourth quarter of 2023.
Overall, these updates provide a more accurate picture of the US economy’s performance in Q4 2023 compared to previous estimates, highlighting continued growth across several sectors despite some fluctuations in specific areas such as private inventory investments.
