US Economy Shows Solid Growth of 3.2% in 4Q23, Slightly Down from 3.3% in First Estimate

The U.S. economy expanded at an annualized rate of 3.2% in the final quarter of 2023, the Commerce Department reported Wednesday in its second estimation.

Growth slowed down from the first estimation of 3.3% by the Commerce Department last month and down from 4.9% in the third quarter. Still, growth for the world’s largest economy rose above 2% for six straight quarters despite high interest rates that many were afraid of pressuring the economy into a recession. Growing exports also contributed to the U.S. economic growth in the fourth quarter.

In the meantime, consumer spending, which accounts for about 70% of U.S. economic activity, rose at an annual pace of 3% in the final quarter.

Inflation in the fourth quarter of last year also declined as the personal consumption expenditures price index rose 1.8% from the same period in 2022, and also down from 2.6% in the third quarter.