In the fourth quarter of 2023, the US economy experienced a significant increase in growth compared to previously reported, with Gross Domestic Product (GDP) revised up to an annualized rate of 3.4%, according to a report from the Bureau of Economic Analysis released on Thursday. Additionally, personal income increased by $230.2 billion in the fourth quarter, an increase of $10.7 billion from the previous estimate.
Real GDP, adjusted for inflation, also increased by 3.2%, driven by upward revisions in consumer spending and non-residential fixed investment, while private investment in inventories saw a slight downward revision. The drivers of the increase in real economic production were consumer spending, government spending, exports and fixed investments.
Personal savings also played a key role in the growth of the US economy during this period, increasing by $6.3 billion to $815.5 billion and rising one percent to 4%. Domestic U.S. corporate profits also grew by $5.9 billion compared to a $9 billion increase in profits in the third quarter of 2023.
Overall, for all of 2023, real gross output grew by 2.1%, with private goods-producing industries growing by 2%, private service industries growing by 2.1% and government growing by 2.2%. A total of 17 out of 22 industrial groups contributed to the increase in real gross production during this year