The US economy experienced growth at a 3.4 per cent annualized rate in the fourth quarter of 2023, surpassing the 3.2 per cent estimates made a month earlier. This increase was primarily due to higher estimates of consumer spending and investment.
Despite initial concerns of a recession, the US economy has defied expectations, prompting optimism that it is heading towards a “soft landing” where inflation decreases without causing a harmful recession. The outlook for the economy appears promising as it continues to show signs of stability and growth.
Throughout the year 2023, the US economy, which is the world’s largest, grew at a rate of 2.5 per cent, reflecting an improvement from the 1.9 per cent growth seen in 2022. Now, in the current January-March quarter, the economy is projected to be growing at a slower but still respectable rate of 2.1 per cent, as per a forecasting model released by the Federal Reserve Bank of Atlanta.
According to the latest report from the US Commerce Department, the upward revisions in consumer spending and non-residential fixed investment were the main factors contributing to the growth. However, these positive factors were partly offset by a downward revision in private inventory investment.
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