In the fourth quarter of 2023, the U.S. economy experienced an upward revision in Gross Domestic Product (GDP), with a revised annual rate of 3.4%. This update was driven by several factors, including consumer spending increases, government spending, exports, and fixed investments.
One notable factor that contributed to this revision was personal income gains. Personal income increased by $230.2 billion in the fourth quarter, with personal savings growing by $6.3 billion to $815.5 billion. The saving rate also climbed to 4.0%, reflecting positive trends in personal income and savings.
Another significant contributor to the revision was domestic U.S. corporate profits, which increased by $5.9 billion compared to a $9 billion rise in the third quarter of 2023.
When looking at the economy as a whole in 2023, real gross output increased by 2.1%. Private goods-producing industries saw an increase of 2%, while private services-producing industries were up by 2.1%. Government output also saw an increase of 2.2%. Prices also saw an increase during this period, 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 also saw an increase of 2%, reflecting overall positive trends in the economy for the fourth quarter of 2023.
Overall, these updates suggest that despite some challenges faced throughout the year, the U