US grew above expectations

The US economy grew by 3.4 percent in the fourth quarter of 2023, above expectations. Market expectations were that the economy would grow by 3.2 percent in the final quarter. The US Department of Commerce announced the final Gross Domestic Product (GDP) data for the October-December 2023 period. Accordingly, US GDP increased by 3.4 percent on an annualized basis in the final quarter of last year. While the GDP data was revised upwards during the period in question, market expectations were that the economy would grow by 3.2 percent in the final quarter. In January, preliminary data regarding the country's GDP data had recorded that the economy grew by 3.3 percent in the fourth quarter of last year, and in the second estimate published in February, it was recorded that it grew by 3.2 percent. The US economy grew by 2.2 percent in the first quarter of last year, 2.1 percent in the second quarter, and 4.9 percent in the third quarter. The country's economy grew by 2.5 percent overall in 2023. The U.S. economy had grown 1.9 percent in 2022. Imports increased The U.S. economy’s fourth-quarter growth last year was driven primarily by increases in consumer spending, state and local government spending, exports, non-residential fixed investment, federal government spending, and residential fixed investment. In the same period, private inventory investment decreased, while imports increased. The revision in GDP for the fourth quarter of last year was primarily driven by upward revisions in consumer spending and non-residential fixed investment partially offset by downward revisions in private inventory investment. In the same period, the increase in the personal consumption expenditures price index remained unchanged at 1.8 percent. Excluding food and energy expenditures, the core personal consumption expenditures price index was revised from 2.1 percent to 2 percent in this period.