US Economy Latest Data: Q4 GDP growth revised to 3.4% from 3.2%, weekly jobless claims drop – Investing Abroad News

Stocks in the US lacked direction on the last trading day of Q1, with the S&P 500 hovering around the flatline, the Dow Jones rising about 70 points and the Nasdaq losing 0.2%, as traders digest economic data and mixed comments from Fed officials, ahead of PCE inflation and Chair Powell appearance tomorrow. The latest data showed a drop in weekly jobless claims, an upward revision of Q4 GDP, accelerated corporate profits, and moderated PCE prices.

Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the fourth quarter of 2023, according to the “third” estimate.

Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance says, “ The strong GDP number this morning – 3.4% vs 3.2% expected – is another reminder of how resilient this economy continues to be. With a resilient economy driven by a resilient consumer, it sets the table for another strong earnings season, which will kick off next month.

For those that are still holding onto the idea that the much-forecasted 2023 recession is right around the corner, they’ve missed an excellent 15 (if not 17) months in the stock market. As always, pullbacks will happen along the way and of course this bull market will end eventually, so we’re not forecasting boom times forever, but we are reminded of legendary investor Peter Lynch who said “more money has been lost preparing for or trying to anticipate recessions than has ever been lost during recessions.”

Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the fourth quarter of 2023, according to the “third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was 3.2 percent. 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 US economy expanded an annualized 3.4% in Q4 2023, slightly higher than 3.2% previously reported, according to the third estimate from the BEA.

Sam Millette, Director of Fixed Income for Commonwealth Financial Network says, “The third and final report for economic growth in the fourth quarter of 2023 came in above economist estimates. The annualized rate of growth was revised up from earlier reports of 3.2 percent to 3.4 percent. This better-than-expected growth was powered in part by positive revisions to personal consumption growth during the quarter.

While the strong growth to the end 2023 was impressive on its own, it also helps explain the economic resilience that we’ve seen throughout the first quarter, as the positive momentum from the end of last year has carried over into 2024. While economists still expect to see slowing growth in the first quarter compared to the end of last year, slowing growth is still growth and the economic backdrop is expected to remain supportive for markets.”