US Q4 Growth Rate in 2023 at 2.4%... 0.1%P Higher Than Preliminary Estimate

Core PCE Price Index Revised Down by 0.1 Percentage Points to 2.6%

The U.S. economy grew at a faster pace than the preliminary estimate for the fourth quarter of last year.

AFP Yonhap News

According to the U.S. Bureau of Economic Analysis (BEA) on the 27th (local time), the final estimate of real Gross Domestic Product (GDP) for the fourth quarter of last year increased by 2.4% on an annualized basis compared to the previous quarter. This exceeded the previously announced preliminary estimate (2.3%) by 0.1 percentage points. The annual growth rate for 2024 was recorded at 2.8%, the same as the preliminary estimate.

Personal Consumption Expenditures (PCE) rose by 4% in the fourth quarter of last year compared to the previous quarter. This was 0.2 percentage points lower than the preliminary estimate (4.2%). The core PCE price index, which the U.S. Federal Reserve (Fed) places the most importance on, was revised down from 2.7% to 2.6%. The core PCE price index excludes volatile energy and food prices to show the underlying trend of inflation.

After-tax profits of U.S. companies increased by 5.9% in the fourth quarter of last year, marking the highest level since 2022. There is analysis suggesting that companies may absorb some of the cost increases caused by tariffs imposed by former President Donald Trump instead of passing them on to consumers, but both consumers and companies remain concerned about inflation rising due to tariff policies.

The final GDP estimate for this fourth quarter reflected upward revisions in net exports, government spending, and corporate investment.

Real Gross Domestic Income (GDI) increased by 4.5% in the fourth quarter of last year.