In the fourth quarter of 2023, the US economy saw a positive revision in Gross Domestic Product (GDP) with an annual rate of 3.4%, reflecting an increase in real GDP of 3.2%. The growth was driven by several factors including consumer spending increases, government spending, exports, and fixed investments.
The Bureau of Economic Analysis (BEA) released a report on Thursday that revealed personal income gains of $230.2 billion in the fourth quarter, with personal savings growing by $6.3 billion to $815.5 billion. The saving rate climbed to 4.0%, indicating positive trends in personal income and savings.
In addition to personal income gains, domestic U.S. corporate profits increased by $5.9 billion compared to a $9 billion rise in the third quarter of 2023. Looking at 2023 as a whole, the BEA reported that real gross output increased by 2.1%, 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 saw an increase in the fourth quarter 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