According to the Bureau of Economic Analysis, the real U.S. GDP saw a 3.2% increase in the fourth quarter of 2023, slightly lower than its initial estimate of 3.3%. However, consumer spending showed an upward revision from 2.8% to a solid growth rate of 3%. The downward revision can be attributed to private inventory investment which increased by $66.3 billion instead of the previously reported $82.7 billion.
In contrast, real GDP experienced a significant increase in comparison with previous years – rising by 2.5% in 2020 and only seeing an uptick of just under two percent in2019.The BEA stated that this rise was mainly due to increases seen across various sectors such as consumer spending, nonresidential fixed investment,state and local government spending,exports,and federal government expenditures.However,this growth was partially offset by decreases observed within residential fixed investments and private inventory investments.In addition,the import sector also saw declines during this period.
The latest report shows that Q4 GDP has been revised slightly downward while consumer spending continues on an upward trend.This indicates positive economic activity for businesses across various industries.With strong numbers like these,it is clear that there are opportunities for continued growth within our economy.
