by Cho Seulkina
Published 29 Feb.2024 05:12(KST)
The U.S. Department of Commerce announced on the 28th (local time) that the preliminary GDP growth rate for the fourth quarter of last year was recorded at an annualized rate of 3.2%.
This figure is a 0.1 percentage point downward revision from the previously released advance estimate of 3.3% last month. The U.S. growth rate is announced in three stages: advance estimate, preliminary estimate, and final estimate.
The Department of Commerce stated, "Compared to the third quarter, personal investment turned downward, and federal government spending, residential fixed investment, and personal consumption expenditures slowed."
Although this marks a clear slowdown compared to the confirmed 4.9% growth rate in the third quarter of last year, it is considered a solid performance reflecting stronger-than-expected consumer spending and government expenditures despite high interest rates and related tightening concerns. The annual growth rate for 2023 was recorded at 2.5%, the same as the advance estimate, surpassing 1.9% in 2022.
Consumer spending in the fourth quarter of last year increased by an annualized 3%. During the same period, the core Personal Consumption Expenditures (PCE) price index, which excludes volatile energy and food prices, rose 2.1%, exceeding the previous quarter's 2% increase.
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