U.S. economy booms with 3.3% growth in final quarter of 2023

The U.S. economy expanded at a 3.3% annualized pace in the final quarter of 2023, the Commerce Department said on Thursday.

Why it matters: It's much stronger growth than economists expected and caps a year of economic resilience as the nation avoided a projected recession.

The economy moderated in the September-December period compared to the previous quarter's 4.9% growth, which got a notable boost from companies building up inventories.

The big picture: Economic growth has been underpinned by booming consumer spending that continued even as prices for many items remain steep and interest rates rose.

That dynamic continued in the fourth quarter, which saw consumer spending boom: rising at a 2.8% annual rate, only slightly easing from the 3.1% in the previous quarter.