In 2023, the U.S. economy grew by 2.5% amid strong consumer spending, according to CNBC. The economy had grown by 1.9% in 2022.
The economy grew by 3.3% from October 2023 to December 2023, which was down from 4.9% in the previous quarter; economists had expected the economy to grow by 2% in the fourth quarter of 2023.
Consumer spending contributed to the fourth-quarter growth as personal consumption expenditures rose 2.8%. Additionally, state and local government spending rose 3.7%, and federal government spending rose 2.5%.
Inflation eased in the final quarter of 2023 as the U.S. avoided a recession expected by forecasters. Markets anticipate the Federal Reserve will start cutting rates while inflation continues toward its 2% goal.
