Economic Growth Due to Increases in Jobs, Incomes, and Spending

Today, the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) reported fourth quarter real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the fourth quarter of 2023 exceeding expectations. Growth was in large part due to an increase in Americans making and spending more. In addition, the economy added 2.7 million jobs in 2023.

Consumer confidence continues to remain strong. Today’s report shows consumer spending in both goods and services beat expectations in both November and December. For the full year, retail sales, excluding auto and gas, increased by 4.9%. Inflation-adjusted, or real, disposal personal income rose 4.2 percent in 2023. Americans also are saving more, with the personal saving rate rising to 4.5 percent in 2023.

Measured from the fourth quarter of 2022 to the fourth quarter of 2023, real GDP increased 3.1 percent during the period compared with an increase of 0.7 percent from the fourth quarter of 2021 to the fourth quarter of 2022.

“From strong GDP growth to moderating inflation, this week’s numbers are more evidence that Bidenomics is delivering for the American people," said Commerce Secretary Gina Raimondo. 

As part of his economic agenda, President Biden believes in making smart investments in America including investing in America’s manufacturing industry. The manufacturing industry continues to boom. Annual manufacturing construction spending made the largest contribution to GDP ever driven by the building of houses and factories.

For more information, see today’s statement by President Biden on the fourth quarter 2023 GDP report.  

By the numbers is a new series that showcases the Commerce Department’s economic indicators and how they impact the American economy.