The US Commerce Department said on Thursday that from October through December, the seasonally adjusted annualised pace of growth for the gross domestic product, a measure of all goods and services produced was 3.3% higher.According to the sources, the US economy defied expectations with a remarkable 3.3% growth in the fourth quarter of 2023, significantly exceeding the anticipated 2.8% expansion. This marks a strong finish to the year, following a 2.5% overall growth in 2023.Compared to July and September, when American consumers made significant purchases of goods and services, this rate was lower at 4.9%. The year 2023 saw a robust 2.5% annual growth rate.The worlds largest economy continues to show unexpected resilience, as evidenced by the latest current data, which shows GDP growing at a rate of 2% or more annually for six straight quarters. Consumers accounted for the majority of the rise in the previous quarter.Compared to 2022, when the economy grew by 1.9%, it expanded by 2.5% overall in 2023.Heres are some key factors to this:Consumer Spending Remains Robust:Despite persistent inflation, consumer spending continued to be a major driver of the economy, growing at a 2.8% annual rate in Q4. This suggests a resilient consumer base that is willing to spend despite higher prices.Easing Inflation: While still a concern, inflation showed signs of cooling in the fourth quarter, with core prices for personal consumption expenditures rising just 2%. This bodes well for future economic stability and could potentially dampen further interest rate hikes by the Federal Reserve.Mixed Bag For Other Sectors:While consumer spending and overall GDP growth were strong, some sectors, like housing activity, saw a slight slowdown compared to the previous quarter. This highlights the uneven nature of the economic recovery, with some areas rebounding faster than others.Overall, the US economys robust performance in the fourth quarter is a positive sign for 2024.
