The United States economy grew at a robust annual rate of 3.2% from October to December, driven by healthy consumer spending, the Commerce Department reported on Wednesday.
Expansion in the country's Gross Domestic Product (GDP) showed overall economic output of goods and services declined from 4.9% from July to September. The fourth quarter GDP figure is estimated to be down from the 3.3% rate that the Department of Commerce reported last month. US growth has now exceeded 2% for six consecutive quarters, dismissing fears that high interest rates will plunge the world's largest economy into recession.
Consumer spending, which accounts for about 70% of US economic activity, grew at an annual rate of 3% from October to December. Increased exports and spending by state and local governments also contributed to growth in the fourth quarter.
The United States is expected to continue growing in 2024. The International Monetary Fund (IMF) expects the American economy to grow by 2.1% this year, more than double the growth forecast for major advanced economies such as Japan, Germany, the United Kingdom, France, and Italy. .
Wednesday's report also showed inflationary pressures continued to ease. The Fed's personal consumption expenditure price index, which is the Fed's preferred measure of prices, rose at an annual rate of 1.8% in the fourth quarter, down from 2.6% in the third quarter.
