The U.S. economy ended last year growing at an even stronger pace than previously thought, government data showed on Thursday.
Gross domestic product, the economy’s official scorecard, grew at an annual rate of 3.4% in the last three months of 2023. According to previous forecasts, the economic growth rate was 3.2%.
Figures are adjusted for inflation.
Personal consumption increased at an annual rate of 3.3%, well above the estimate of 3.0% a month ago.
Economic growth estimates are revised as governments collect more data on production, consumption, and investment. The previous update was the third since the end of the quarter and reflected upward revisions to consumer spending and non-residential capital investment. Corporate inventory investment was revised downward, partially offsetting the upward pressure on GDP.
Inflation, as measured by the personal consumption expenditure (PCE) price index, rose at a pace of 1.8%, consistent with previous expectations. Core PCE inflation, which excludes food and fuel prices, rose at a pace of 2.0%, revised down from the previous forecast of 2.1%.
Gross domestic income, a proxy measure of economic activity, grew at a pace of 4.8%. This is the first estimate of GDI. Some economists average GDP and GDI as a way to approximate economic growth. The average for the fourth quarter was 4.1%.
GDP is The increase will be 2.5 percent in 2023, compared to 1.9 percent in 2022. This increase was driven by rapid growth in consumer spending, nonresidential capital investment, state and local government spending, exports, and federal spending.
