US economic growth beats forecasts at 3.3% but rate cuts uncertainty lingers

Surpassed market expectation of 2%.

US gross domestic product grew at an annual rate of 3.3% in the last quarter of 2023, the Bureau of Economic Analysis said today (25 January).

GDP growth slowed from 4.9% in the third quarter, with the agency noting that a slowdown in private inventory investment, federal government spending, residential fixed income and consumer spending were contributing factors, while imports decelerated as well. The fourth-quarter figure was higher than what markets had forecast, with economists expecting US GDP to come in at 2% for the last three months of 2023. The BEA also found current-dollar GDP increased 4.8% over the last quarter of the year to $27.9trn, compared to an 8.3% rise in the third quarter. Market remains bullish on r...