The U.S. Bureau of Economic Analysis (BEA) reported on February 28, 2024, a 3.2% growth in the economy for the last quarter of 2023.
This figure falls short by 0.1 percentage points from the early January guess of 3.3%. A dip in private inventory spending caused this slight adjustment.
The revision came after a closer look showed less spending on stock by businesses. Yet, more spending from state and local governments and consumers helped balance this.
These factors, along with more exports and investments in buildings and equipment, fueled growth. Money spent by the federal government and on homes also played a part.
This growth rate marks a slowdown from the 4.9% seen in the third quarter of 2023.
Even so, the year 2023 ended with a 2.5% growth, speeding up from the 1.9% in 2022.
Inflation and borrowing costs played a big role too. In January, yearly inflation was 3.1%, a bit less than December’s 3.4%.
Rates for borrowing have stayed at 5.25% to 5.50% since July, the highest since 2001.
The Federal Reserve, aiming to control inflation, plans to keep rates steady. They want to be sure inflation steadily heads towards their 2% goal before making changes.
This approach shows their focus on keeping prices stable while watching over economic progress.