Economic Expansion Surpasses Projections for the Full Year and Last Quarter of 2023

U.S. Economy Surpasses Expectations with Strong Growth in 2023

On January 26, 2024, the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) released its report on the fourth quarter of 2023, revealing that the U.S. economy grew at a faster rate than expected. This growth was driven by increases in jobs, incomes, and consumer spending.

In 2023, the economy added 2.7 million jobs, and consumer confidence remained high. Retail sales, excluding auto and gas, increased by 4.9% for the full year, and real disposal personal income rose by 4.2%. Additionally, Americans are saving more, with the personal saving rate rising to 4.5%.

Compared to the same period in 2022, real GDP increased by 3.1% in the fourth quarter of 2023, a significant improvement from the 0.7% increase in the previous year. “From strong GDP growth to moderating inflation, this week’s numbers are more evidence that Bidenomics is delivering for the American people,” said Commerce Secretary Gina Raimondo.

President Biden’s economic agenda includes smart investments in America, particularly in the manufacturing industry, which continues to thrive. In fact, annual manufacturing construction spending made the largest contribution to GDP ever, driven by the construction of houses and factories.

For more information, see President Biden’s statement on the fourth quarter 2023 GDP report. This is part of our new series, “By the Numbers,” which highlights the impact of the Commerce Department’s economic indicators on the American economy.  

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