Good News: ‘U.S. economy booms with 3.3% growth’ in 4th Quarter 2023
Breaking Thursday morning was the latest economic news with Axios reporting, “U.S. economy booms with 3.3% growth in 4th quarter of 2023.” It added:
Why it matters: The new data beat economists’ expectations and caps a year of resilient economic growth as the nation avoided a projected recession.
The bottom line: The strong data shows the U.S. economy was solid in 2023 even as aggressive interest rate hikes by the Federal Reserve still rippled through the economy. That happened alongside cooling inflation — defying doomsayers who suggested a downturn was all but necessary to crush price pressures.
The Washington Post headlined the news with, “The economy grew by a bustling 3.1 percent in 2023, fueled by consumer spending and a strong labor market.” Economics reporter Abha Bhattarai wrote:
The U.S. economy grew by a bustling 3.1 percent in 2023, shaking off recession fears and offering an upbeat picture of consumers and businesses ahead of a pivotal election year.
The economy’s resilience has been driven by vigorous consumer spending. A strong job market and rising wages have made it possible for many households to keep shelling out — particularly on services such as entertainment, travel and dining out — even at a time of elevated inflation.
That spending by everyday Americans accounted for most of the economy’s growth in the fourth quarter.
Not bad for our post-pandemic world where other countries are still struggling with inflation and economies. The Post also noted, “Although growth slowed in the last three months of the year, according to data released by the Bureau of Economic Analysis, the economy has returned to a stable footing following a period of dramatic pandemic-fueled swings that marked 2020 through early 2022.”
In December, CNN reported, “For most of the past two decades, growth in US GDP has surpassed growth in the United Kingdom and the eurozone. That trend has continued since the Covid-19 pandemic.”
Good news as the U.S. heads into 2024.