In the fourth quarter of 2023, the U.S. economy experienced an upward revision in Gross Domestic Product (GDP), with a revised annual rate of 3.4% reflecting a real GDP increase of 3.2%. This growth was driven by several factors, including increases in consumer spending, government spending, exports, and fixed investments. Additionally, personal income saw gains in the fourth quarter, with personal savings growing by $6.3 billion to $815.5 billion and the saving rate climbing to 4.0%.
The Bureau of Economic Analysis (BEA) reported that real gross output increased by 2.1% for the year as a whole, with private goods-producing industries up by 2% and private services-producing industries up by 2.1%. Government output also saw an increase of 2.2%. Prices also rose during this time period, with the price index for gross domestic purchases up by 1.9% and personal consumption expenditures increasing by 1.8%. The PCE index excluding food and energy saw an increase of 2.0%, indicating positive trends in the economy overall for the fourth quarter of 2023.
Looking at individual sectors within the U.S., domestic U.S. corporate profits increased by $5.9 billion compared to a $9 billion rise in the third quarter of 2023, indicating strong performance across many industries.
Overall, these updates suggest that despite challenges faced throughout the year, the U.S