US economy grew faster than expected during the 4th quarter
Blackstone Chairman, CEO and co-founder Stephen Schwarzman provides his 2024 economic outlook, his thoughts on commercial real estate, capital market activity and downside risks to A.I.
The U.S. economy grew at a faster pace than expected at the end of 2023, underscoring its resilience even in the face of still-high inflation and steep interest rates.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 3.3% on an annualized basis in the three-month period from October through December, the Commerce Department said in its first reading of the data Thursday.
That is far higher than the 2% increase forecast by Refinitiv economists, although it marks a notable drop from the rapid 4.9% pace seen during the third quarter.
«GDP has four cylinders, and the fourth quarter fired on them all,» said Robert Frick, corporate economist with Navy Federal Credit Union. «Pundits are already saying this will be as good as it gets, but then again, most were predicting a recession last year that never came.»
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Consumer spending, which accounts for about two-thirds of GDP, continued to power economic growth during the fourth quarter. It rose 2.8% for the period, down just slightly from the previous quarter.
Increases in private inventory investments, a boost in federal government spending and a jump in non-residential fixed income also helped to boost the GDP numbers. However, high mortgage rates continued to drain demand from the real estate market, with investment in housing plunging 27% for a second straight quarter.
A Bloomingdale's store in the Soho neighborhood of New York City on Jan. 22, 2024. (Photographer: Shelby
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