The Bureau of Economic Analysis Thursday released 2023’s fourth quarter gross domestic product (GDP) report, which showed an annual rate increase of 3.3%.
“Fourth quarter GDP exceeded expectations as consumption remained strong, inventories held up better than anticipated, and trade made a surprising positive contribution to growth,” said America’s Credit Unions’ Curt Long. “When considered alongside the slowing growth in payrolls, this report provides further evidence of a pickup in labor productivity, which is helping to tamp down inflation. Overall, this report is consistent with America’s Credit Unions’ forecast of three rate cuts from the Federal Reserve in 2024.”
The increase in real GDP saw growth in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment. Additionally, consumer spending was up in food services and accommodations, health care, sporting goods, and vehicles.
