Consumer, Government Spending Lead to Better-Than-Expected 4th Quarter GDP

The U.S. economy expanded above 3 percent in the fourth quarter, topping economists’ expectations and ending 2023 on a high note. In the year’s final three months, the GDP growth rate—a measure of goods and services produced for sale in the United States—was 3.3 percent, down from 4.9 percent in the third quarter and above the consensus estimate of 2 percent, according to the Bureau of Economic Analysis (BEA). Overall, the U.S. economy grew 2.5 percent in 2023, up from 1.9 percent in 2022. Consumer and government spending accounted for much of the economic growth in the fourth quarter. Personal consumption expenditures ballooned 2.8 percent, with goods and services spending rising 3.8 percent and 2.4 percent, respectively. Real consumer spending slowed from 3.1 percent. Additionally, this category added 1.91 percent to the final reading, representing 57 percent of GDP growth....