The US economy grew at a solid 3.4 per cent annual pace from October through December, the government said yesterday in an upgrade from its previous estimate. The government had previously estimated that the economy expanded at a 3.2pc rate last quarter.
The Commerce Department’s revised measure of the nation’s gross domestic product confirmed that the economy decelerated from its sizzling 4.9pc rate of expansion in the July-September quarter.
But last quarter’s growth was still a solid performance, coming in the face of higher interest rates and powered by growing consumer spending, exports and business investment in buildings and software. It marked the sixth straight quarter in which the economy has grown at an annual rate above 2pc.
For all of 2023, the US economy grew 2.5pc, up from 1.9pc in 2022. In the current January-March quarter, the economy is believed to be growing at a slower but still decent 2.1pc annual rate, according to a forecasting model issued by the Federal Reserve Bank of Atlanta.