US real gross domestic product increased at an annual rate of 3.3% in the fourth quarter of 2023, according to the advance estimate released today by the US Bureau of Economic Analysis. The GDP increased more than economists had projected but less than the third-quarter growth of 4.9%.

Economists polled by Reuters had forecast GDP rising at a 2.0% rate. Reuters reported the economy is expanding at a pace above what Federal Reserve officials regard as the non-inflationary growth rate of about 1.8%.

Today’s advance GDP estimate reflects the first GDP estimate for the fourth quarter and is subject to further revision. A second estimate for the fourth quarter will be released on Feb. 28.

The increase in real GDP reflected increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment and residential fixed investment.

Meanwhile, imports — which are a subtraction in the calculation of GDP — increased in the fourth quarter.