The Bureau of Economic Analysis released a report on Thursday, revealing that the U.S. economy experienced even stronger growth in the fourth quarter of 2023 than initially estimated.
The fourth quarter saw a $230.2 billion increase in personal income, up $10.7 billion from the previous estimate, and a revision to the U.S. GDP to 3.4% annual growth.
The real GDP, after accounting for inflation, experienced a growth of 3.2%.
According to a statement from the Commerce Department’s BEA, the recent update mainly consisted of positive adjustments to consumer spending and nonresidential fixed investment. However, these gains were partially offset by a downward revision to private inventory investment.
The latest revision of the GDP forecast for the fourth quarter of 2023 has exceeded economic expectations, even surpassing the previous estimate of a 2.5% increase.
Personal saving also experienced growth, increasing by $6.3 billion to reach a total of $815.5 billion. Furthermore, the saving rate saw a one percent increase, reaching 4.0%.
Domestic U.S. corporate profits saw a notable increase of $5.9 billion, surpassing the $9 billion rise in profits recorded during the third quarter of 2023. This growth in corporate profits complements the gains made in personal income and savings.
In 2023, the Bureau of Economic Analysis (BEA) reported that there was a 2.1% increase in real gross output for the year. Private goods-producing industries experienced a 2% growth, while private services-producing industries saw a 2.1% increase. The government sector also saw a 2.2% growth during this period.
According to the report, real gross output saw an increase, and this rise was attributed to the contribution of 17 out of 22 industry groups.
According to the BEA, the price index for gross domestic purchases saw a 1.9% increase in the fourth quarter. Additionally, personal consumption expenditures (PCE) also rose by 1.8%.
The PCE index, excluding food and energy, saw a 2.0% increase.
