The U.S. economy experienced further growth in the fourth quarter of 2023 than previously reported, according to a report from the Bureau of Economic Analysis released Thursday. The Gross Domestic Product (GDP) was revised up to an annual rate of 3.4%, while personal income saw an increase of $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%. This update was primarily due 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.
Personal saving also saw growth, increasing by $6.3 billion to $815.5 billion, while the savings rate climbed by one percent to 4.0%. Additionally, domestic U.S. corporate profits increased 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 2.1%, and government increased by 2