The first reading of fourth quarter 2023 Gross Domestic Product (GDP) showed that the U.S. economy grew by 3.3%. While this is a decline from 4.9% in the third quarter, it was much stronger than estimates and due in large part to easing inflation and a strong pace of consumer spending.
What’s the bottom line? While this data is subject to revision when the second and final readings are released on February 28 and March 28, respectively, the stronger than expected first reading is promising given that GDP functions as a scorecard for the country’s economic health.
In addition, GDP for all of 2023 grew at a 2.5% annualized pace, higher than the 1.9% growth seen in 2022 and well above forecasts at the start of last year that had called for little to no growth.