US Economy Surpasses Growth Estimates in Q4 2023, Moving Towards “Soft Landing” Outlook
In the fourth quarter of 2023, the US economy experienced growth at an annualized rate of 3.4%, surpassing the 3.2% estimates made a month earlier. The increase in economic growth was primarily due to higher estimates of consumer spending and investment, according to a report from the US Commerce Department.
Despite initial concerns of a recession, the US economy has defied expectations, prompting optimism that it is heading towards a “soft landing” where inflation decreases without causing a harmful recession. This outlook is supported by the Federal Reserve Bank of Atlanta’s forecasting model, which predicts that the economy will grow at a slower but still respectable rate of 2.1% in the current January-March quarter.
Throughout the year 2023, the US economy grew at a rate of 2.5%, reflecting an improvement from the 1.9% growth seen in 2022. Despite these positive developments, there were some downward revisions in private inventory investment that partly offset these positive factors.
The upward revisions in consumer spending and non-residential fixed investment were the main factors contributing to economic growth in Q4 of 2023. However, private inventory investment saw downward revisions that partially offset these positive factors. Overall, the US economy showed signs of stability and growth throughout 2023, despite some initial concerns about a recession.
As we move into January-March quarter of 2024, it’s clear that the US economy continues to show promising signs of stability and growth. With access to informative newsletters, real-time stock tracking, breaking news updates and customized newsfeeds through our platform, you can stay updated on all economic developments with just one click! Login now to unlock these valuable resources and experience all that our platform has to offer!
