The United States’ economic growth for the last quarter of the previous year saw an unexpected upward revision, according to government data released on Thursday. This was attributed to increased consumer spending and investment estimates.
The GDP growth of the world’s largest economy was recorded at an annual rate of 3.4 percent in the last three months of 2023, as reported by the Commerce Department.
This rate surpassed both the initial and secondary estimates of 3.3 percent and 3.2 percent, respectively.
“Upward revisions to consumer spending and nonresidential fixed investment were the main contributors to this update,” the Commerce Department explained.
However, the report noted that there was a partial offset due to a downward revision in private inventory investment.
Despite these revisions, the full-year growth remained at 2.5 percent.
The consensus among analysts was that the GDP estimates would hold steady at 3.2 percent, yet the actual figures surpassed these expectations.
Contrary to predictions that consumer spending would decline as pandemic-era savings dwindled and borrowing costs stayed high, consumption proved to be robust last year.
Moreover, the US economy avoided the anticipated recession, leading to a hopeful outlook that it may achieve a “soft landing,” where inflation decreases without precipitating a severe recession.
