USD: US Q4 GDP revised up to 3.4% from 3.2%
US Q4 GDP came at higher than expected as 3.4% from 3.2% estimate, This reading came from Consumer spending, Fixed investments partly offset by downtrend of Private inventory investment. US Dollar moved down after the data released.
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According to the latest report released by the United States Bureau of Economic Analysis (BEA) on Thursday, the Gross Domestic Product (GDP) of the country expanded at an annual rate of 3.4% in the fourth quarter. This figure represents the final estimate provided by the BEA, following its previous estimate of 3.2% growth in real GDP.
The BEA highlighted that the upward revision primarily stemmed from positive adjustments made to consumer spending and nonresidential fixed investment. However, these gains were partially counterbalanced by a downward revision to private inventory investment. This update was detailed in a press release issued by the BEA alongside the final GDP estimate.
USD: US Q4 GDP: Economy Surges 3.4% YoY on Consumer Spending, Strong Exports
US Q4 GDP came at higher than expected as 3.4% from 3.2% estimate, This reading came from Consumer spending, Fixed investments partly offset by downtrend of Private inventory investment. US Dollar moved down after the data released.
The latest data from the United States Bureau of Economic Analysis (BEA) reveals that the US gross domestic product (GDP) expanded at a 3.4 percent annualized rate in the fourth quarter of 2023, marking an upward revision from the previous estimate of 3.2 percent reported a month earlier. This growth was primarily supported by increased consumer spending, robust exports, and higher business investment levels during the October-December period.
According to the US Commerce Department’s report, the upward revisions in GDP were mainly attributed to positive adjustments in consumer spending and non-residential fixed investment. However, these gains were partially offset by a downward revision in private inventory investment.
In comparison to the third quarter, which saw GDP growth at 4.9 percent, the fourth-quarter expansion represented a sequential decrease. Nonetheless, for the entirety of 2023, the US economy expanded by 2.5 percent, showing a notable improvement from the 1.9 percent growth recorded in 2022.
Looking ahead, the Federal Reserve Bank of Atlanta’s forecasting model suggests that the US economy is likely to experience a slower but still respectable growth rate of 2.1 percent in the current January-March quarter.
Despite multiple interest rate hikes by the Federal Reserve since March 2022, aimed at curbing inflation, the US economy has demonstrated remarkable resilience, continuously expanding and maintaining strong job creation rates. Additionally, inflation, though still elevated, has moderated from its peak in mid-2022.
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This combination of steady economic growth and moderating inflation has raised optimism that the Fed can achieve a “soft landing” by effectively managing inflation without triggering a recession. The latest GDP estimate marks the third and final revision for the fourth quarter, with the Commerce Department scheduled to release the initial estimate for January-March growth on April 25.
Investor attention will now turn to the upcoming release of the Personal Consumption Expenditures Price Index (PCE) on Good Friday, which serves as the Fed’s preferred inflation gauge. Analysts view this report as crucial, as it will provide insights into whether recent inflation reports represent temporary fluctuations or a sustained upward trend in inflation levels.
USD: US Q4 GDP revised up to 3.4%, weekly jobless claims fall
US Q4 GDP came at higher than expected as 3.4% from 3.2% estimate, This reading came from Consumer spending, Fixed investments partly offset by downtrend of Private inventory investment. US Dollar moved down after the data released
Stocks in the US displayed mixed movement on the final trading day of the first quarter, with the S&P 500 hovering around the flatline, the Dow Jones advancing approximately 70 points, and the Nasdaq declining by 0.2%.
Traders were digesting a plethora of economic data alongside varied remarks from Federal Reserve officials, all ahead of the Personal Consumption Expenditures (PCE) inflation report and Chair Powell’s appearance scheduled for the following day. The latest data unveiled a decrease in weekly jobless claims, an upward revision of the fourth-quarter GDP, accelerated corporate profits, and moderated PCE prices.
The Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) surged at an annual rate of 3.4% in the fourth quarter of 2023, as per the “third” estimate.
Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, emphasized, The strong GDP number this morning – 3.4% vs 3.2% expected – is another reminder of how resilient this economy continues to be. With a resilient economy driven by a resilient consumer, it sets the table for another strong earnings season, which will kick off next month.
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Sam Millette, Director of Fixed Income for Commonwealth Financial Network, highlighted, The third and final report for economic growth in the fourth quarter of 2023 came in above economist estimates. The annualized rate of growth was revised up from earlier reports of 3.2 percent to 3.4 percent. This better-than-expected growth was powered in part by positive revisions to personal consumption growth during the quarter. While the strong growth to the end 2023 was impressive on its own, it also helps explain the economic resilience that we’ve seen throughout the first quarter, as the positive momentum from the end of last year has carried over into 2024. While economists still expect to see slowing growth in the first quarter compared to the end of last year, slowing growth is still growth and the economic backdrop is expected to remain supportive for markets.
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