Significant Fourth Quarter GDP Revision: U.S. Economy Continues Strong in 2023

In the fourth quarter of 2023, the U.S. economy saw a significant upward revision in its Gross Domestic Product (GDP), according to a report released by the Bureau of Economic Analysis (BEA) on Thursday. The annual rate of GDP was revised up to 3.4%, reflecting an increase in real GDP of 3.2%. This update was driven by several factors, including consumer spending increases, government spending, exports, and fixed investments.

Personal income also saw gains in the fourth quarter, with personal savings growing by $6.3 billion to $815.5 billion. The saving rate climbed to 4.0%, reflecting positive trends in personal income and savings. Domestic U.S. corporate profits increased by $5.9 billion, compared to a $9 billion rise in the third quarter of 2023, indicating a strong performance from businesses in the final months of the year.

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, with the price index for gross domestic purchases up by 1.9% and personal consumption expenditures increasing by 1.8%.

Overall, these updates indicate that the U