U.S. economy: The U.S. economy continued to grow at a seasonally adjusted annual rate (SAAR) of 3.4% in Q4 2023 as per the third and final estimate of the Real Gross Domestic Product (GDP) closing out 2023 at 2.5% SAAR compared to the 2022 annual levels.¹ While growth in Q4 2023 softened compared to the 4.9% growth in Q3 2023, it remains above estimates of long-term potential growth. The upward revisions to the third estimate for Q4 2023 predominately reflect an increase in consumption spending, which contributed 2.2 percentage points to overall growth. While government spending increased 4.6% in the third estimate compared to 4.2% in the second estimate for Q4 2023, government spending is moderating compared to the 5.8% increase in Q3 2023.

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