The U.S. economy grew at a 3.2% annual pace in the fourth quarter of 2023, driven by healthy consumer spending, according to the Commerce Department, a slight downgrade from the initial estimate of 3.3%.
The growth in GDP slipped from 4.9% in the previous quarter but has remained above 2% for six consecutive quarters. On an annual basis, GDP rose 3%. Consumer spending grew 3%, while spending by state and local governments rose 5.4%.
Additionally, the personal consumption expenditures price index — the Federal Reserve's favored measure of prices — rose at a 1.8% annual rate in the fourth quarter, down from 2.6% in the third. See more results.