US consumer spending boosts GDP to 3.2% growth in 4th quarter

Posted on March 4, 2024   |  

Last quarter, the GDP grew by 3.2%, slightly lower than the initial 3.3% estimate.

This adjustment was due to a decrease in private inventory investment, now estimated at $66.3 billion instead of $82.7 billion.

Inventories had a negative impact of 0.27% on GDP growth, contrary to previous beliefs.

The economy expanded by 4.9% in the July-September quarter and 2.5% in 2023, showing improvement from 1.9% in 2022.

Consumer spending, a significant driver of the economy, increased by 3.0%, up from the initial estimate of 2.8%.

Domestic demand showed strength, growing by 2.9% compared to the earlier reported 2.6%.

Core inflation, excluding food and energy, exceeded the Fed's 2% target, largely due to higher housing costs.

Financial markets expect the Fed to cut interest rates in June, shifting from previous expectations of May, following multiple rate hikes since March 2022.