U.S. Economy Grew at 2.3% Rate in 4th Quarter, Slowest Pace in Seven Months
The U.S. economy grew slower than expected in the fourth quarter, with gross domestic product increasing at an annual rate of 2.3%, according to new data from the Commerce Department’s Bureau of Economic Analysis (BEA). This is a slower pace than the 2.6% growth rate anticipated by economists. The 2.3% growth was the slowest quarterly pace in seven months, coming after a strong 3.1% GDP growth rate in the third quarter.
The U.S. consumer and government spending drove the quarter’s GDP growth, but investment declined. Consumer spending grew by 4.2% in the fourth quarter, while government spending increased 2.5%. However, business investment saw a decline, with investment in equipment falling 7.8% and in structures decreasing by 2.2%.
Existing home sales declined to their lowest level in nearly 30 years, furthering concerns about a potential slowdown. Despite this, the Federal Reserve held interest rates steady after releasing its own interest rate decision amid uncertainty about inflation.
The Bureau of Economic Analysis also released a forecast for 2024 GDP growth, anticipating a 2.8% increase. Economic strategists remained optimistic about the U.S. consumer, despite inflation concerns and the Fed’s pause on rates.
