U.S. economy grew more than first reported in 2023 fourth quarter

March 28 (UPI) -- The U.S. economy grew even more in the fourth quarter of 2023 than previously reported, according to a Bureau of Economic Analysis report released Thursday.

U.S. Gross Domestic Product was revised up to an annual rate of 3.4%, while personal income increased by $230.2 billion in the fourth quarter, up $10.7 billion from the previous estimate.

The increase in real GDP, adjusted for inflation, was 3.2%.

"The update primarily reflected upward revisions to consumer spending and nonresidential fixed investment that were partly offset by a downward revision to private inventory investment," the Commerce Department's BEA said in a statement.

Driving the revised real economic output were consumer spending increases, government spending, exports and fixed investments.

Even the previous estimate of a 2.5% GDP rise before this upward revision beat economic expectations for the 2023 fourth quarter.

Personal saving grew, too. It was up $6.3 billion to $815.5 billion. The saving rate climbed by one percent to 4.0%.

On top of the personal income and savings gains, domestic U.S. corporate profits increased by $5.9 billion, compared with a $9 billion rise in profits for the third quarter of 2023.

For 2023 as a whole, the BEA said, real gross output increased 2.1%, private goods-producing industries increased 2 % , private services-producing industries increased 2.1%, and government increased 2.2%.

"Overall, 17 of 22 industry groups contributed to the increase in real gross output," it said.

As for prices, the BEA said the price index for gross domestic purchases was up 1.9% in the fourth quarter while PCE, the personal consumption expenditures, increased 1.8%.

The PCE index excluding food and energy increased 2.0%.