US Economy Expands 3.4% In Q4, Shows Final Reading

The US economy expanded 3.4% in the fourth quarter of 2023, according to the Commerce Department's third and final reading released Thursday.

The figure is revised up from the second reading of 3.2% made last month.

The American economy expanded by 4.9% in the third quarter of last year.

The current dollar GDP increased 5.1% at an annual rate, or $346.9 billion, in the fourth quarter to reach $27.96 trillion, the Commerce Department said in a statement.

This is an upward revision of $12.4 billion from the previous estimate that was made in February, it added.

National Economic Advisor Lael Brainard said the figures show continued progress on President Joe Biden's agenda to lower costs and grow the American economy.

"Challenges remain, but working families are starting to see the results of President Biden's economic plan, with wages rising faster than inflation, record wealth and business creation, and the strongest job market in more than 50 years," she said in a statement released by the White House.

Brainard emphasized that US GDP in the second half of 2023 grew faster than any point from 2015 through the coronavirus pandemic.

"We have more work to do to lower costs for American families—building on the progress we've made to lower costs for health care, prescription drugs, and housing. With corporate profits still elevated, President Biden will continue to call on companies to pass their savings on to consumers," she said.

Brainard noted consumer sentiment climbed in March to its highest since July 2021.

"Consumer sentiment has turned a corner and is up nearly 30% over the last four months, the fastest increase in 30 years," she said. "The turnaround in consumer sentiment comes as consumers expect lower inflation and report feeling good about their personal finances." -