US Q4 economic growth beats expectations

WASHINGTON, Jan 25 (Reuters): The US economy grew faster than expected in the fourth quarter amid strong consumer spending, and defied dire predictions of a recession in 2023 after the Federal Reserve aggressively raised interest rates, with growth for the full year coming in at 2.5 per cent.
Gross domestic product in the last quarter increased at a 3.3 per cent annualised rate, the Commerce Department's Bureau of Economic Analysis said on Thursday in its advance estimate of fourth-quarter GDP.
The economy grew at a 4.9 per cent pace in the third quarter. Economists polled by Reuters had forecast GDP advancing at a 2.0 per cent rate. Estimates ranged from a 0.8 per cent rate to a 2.8 per cent pace. The economy is expanding at a pace above what Fed officials regard as the non-inflationary growth rate of around 1.8 per cent.
Growth last year accelerated from 1.9 per cent in 2022. The economy has stunned captains of industry and some economists who had called for a downturn since mid-2022. Part of the economy's stamina reflects labor market resilience, marked by low layoffs and strong wage gains, which are underpinning consumer spending.