U.S. Economy surges in fourth quarter of 2023 with GDP growth and personal income increases

The U.S. economy experienced a significant boost in the fourth quarter of 2023, with Gross Domestic Product (GDP) growth and personal income increases, according to a report from the Bureau of Economic Analysis released on Thursday.

GDP was revised up to an annual rate of 3.4%, while personal income saw an increase of $230.2 billion in the fourth quarter, up $10.7 billion from the previous estimate. The real GDP, adjusted for inflation, increased by 3.2%, primarily due to upward revisions in consumer spending and nonresidential fixed investment, although private inventory investment saw a slight downward revision.

Driving the increase in real economic output were consumer spending, government spending, exports, and fixed investments. Personal saving also saw growth, increasing by $6.3 billion to $815.5 billion, while the savings rate climbed by one percent to 4%. Additionally, domestic U.S. corporate profits increased by $5.9 billion compared to a $9 billion rise in profits for the third quarter of 2023.

For the entire year of 2023, the real gross output increased by 2.1%, private goods-producing industries grew by 2%, private services-producing industries increased by 2.1%, and government increased by 2.2%. A total of 17 out of 22 industry groups contributed to the increase in real gross output