U.S. GDP Grows Better Than Forecasts

U.S. GDP Grows Better Than Forecasts. According to the latest release by Bureau of Economic Analysis it grew at 3.2%. The US GDP release is a crucial economic indicator. It provides insight into the overall health and performance of the country’s economy. This data is closely monitored by investors, policymakers, and businesses to gauge the economic growth trajectory.

Q4 2023 GDP Growth: 3.4% Vs Forecast of 3.2%

U.S. GDP grows better than forecasts for the fourth quarter of year 2023. Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the fourth quarter of 2023, according to the third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The increase in real GDP primarily reflected increases in consumer spending, state and local government spending, exports, nonresidential fixed investment, federal government spending, and residential fixed investment that were partly offset by a decrease in private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

Yesterday’s release includes estimates of GDP by industry, or value added—a measure of an industry’s contribution to GDP. Private goods-producing industries increased 7.0 percent, private services-producing industries increased 2.6 percent, and government increased 3.1 percent. Overall, 18 of 22 industry groups contributed to the fourth-quarter increase in real GDP.

Real gross output—principally a measure of an industry’s sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)—increased 2.4 percent in the fourth quarter. This reflected an increase of 3.7 percent for private goods-producing industries, an increase of 2.0 percent for private services-producing industries, and an increase of 1.8 percent for government. Overall, 13 of 22 industry groups contributed to the increase in real gross output.

Official release can be accessed by clicking here.