Real US gross domestic product (GDP) increased at an annual rate of 3.4 per cent in the fourth quarter (Q4) last year, according to the third estimate released by the Bureau of Economic Analysis (BEA). In Q3 2023, real GDP increased by 4.9 per cent.

In the second estimate released last month, the increase in real GDP was 3.2 per cent.

The update primarily reflected upward revisions to consumer spending and non-residential fixed investment that were partly offset by a downward revision to private inventory investment, BEA said in a release. Imports, which are a subtraction in the calculation of GDP, increased.

Current-dollar GDP increased by 5.1 per cent at an annual rate, or by $346.9 billion, in Q4 2023 to a level of $27.96 trillion, an upward revision of $12.4 billion from the previous estimate.

The price index for gross domestic purchases increased by 1.9 per cent in Q4 2023, the same as in the previous estimate.

The personal consumption expenditures (PCE) price index increased by 1.8 per cent, the same as the previous estimate, and the PCE index excluding food and energy prices rose by 2 per cent, a downward revision of 0.1 percentage point.

Real gross domestic income (GDI) increased by 4.8 per cent in Q4 2023 compared with an increase of 1.9 per cent in Q3.

The average of real GDP and real GDI, a supplemental measure of US economic activity that equally weights GDP and GDI, increased by 4.1 per cent in Q4 2023 compared with an increase of 3.4 per cent in Q3.

Profits from current production increased by $133.5 billion in Q4 2023 compared with a rise of $108.7 billion in Q3.

Profits of domestic financial corporations increased by $5.9 billion in Q4 2023 compared with an increase of $9 billion in Q3.

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 by 2.4 per cent in Q4 2023.

Fibre2Fashion News Desk (DS)

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