U.S. economy booms with 3.3% growth in final quarter of 2023
The U.S. economy expanded at a 3.3% annualized pace in the final quarter of 2023, the Commerce Department said on Thursday.
Why it matters: It’s much stronger growth than economists expected and caps a year of economic resilience as the nation avoided a projected recession.
- The economy moderated in the September-December period compared to the previous quarter’s 4.9% growth, which got a notable boost from companies building up inventories.
The big picture: Economic growth has been underpinned by booming consumer spending that continued even as prices for many items remain steep and interest rates rose.
- That dynamic continued in the fourth quarter, which saw consumer spending boom: rising at a 2.8% annual rate, only slightly easing from the 3.1% in the previous quarter.
Details: The strong inventory build-up that pushed up growth in the third quarter slowed in the most recent data.
- Meanwhile, fixed investment — spending on factories, equipment and more — rose 1.9%, up slightly from the 1.4% in the third quarter.
- Housing activity, meanwhile, slowed from the prior quarter’s rapid pace: 1.1% in the fourth quarter, compared to 6.7% in the third quarter.
The bottom line: The strong data shows the U.S. economy was solid in 2023 even as aggressive interest rate hikes by the Federal Reserve still rippled through the economy.
Editor’s note: This is a breaking news story. Check back for updates.
Get the rundown of the biggest stories of the day with Axios Daily Essentials.
News Related-
Russian court extends detention of Wall Street Journal reporter Gershkovich until end of January
-
Russian court extends detention of Wall Street Journal reporter Evan Gershkovich, arrested on espionage charges
-
Israel's economy recovered from previous wars with Hamas, but this one might go longer, hit harder
-
Stock market today: Asian shares mixed ahead of US consumer confidence and price data
-
EXCLUSIVE: ‘Sister Wives' star Christine Brown says her kids' happy marriages inspired her leave Kody Brown
-
NBA fans roast Clippers for losing to Nuggets without Jokic, Murray, Gordon
-
Panthers-Senators brawl ends in 10-minute penalty for all players on ice
-
CNBC Daily Open: Is record Black Friday sales spike a false dawn?
-
Freed Israeli hostage describes deteriorating conditions while being held by Hamas
-
High stakes and glitz mark the vote in Paris for the 2030 World Expo host
-
Biden’s unworkable nursing rule will harm seniors
-
Jalen Hurts: We did what we needed to do when it mattered the most
-
LeBron James takes NBA all-time minutes lead in career-worst loss
-
Vikings' Kevin O'Connell to evaluate Josh Dobbs, path forward at QB