Close Navigation
Learn more about IBKR accounts

US Economic Growth Upwardly Revised To 3.4% In Q4, Jobless Claims Slow: Thursday’s Economic Digest 

Posted March 28, 2024
Piero Cingari


  • U.S. GDP for Q4 2023 revised up, showing 3.4% growth, down from previous quarter but still robust.
  • Weekly unemployment claims lower than expected, indicating a stable labor market.

Editor’s note: This story has been updated with additional details.

U.S. gross domestic product in the fourth quarter of 2023 was upwardly revised in the third estimate released Thursday, indicating a deceleration compared to the previous quarter but still maintaining a solid pace of growth.

Concurrently, the latest report from the U.S. Labor Department showed a lower-than-expected pace in weekly unemployment benefit claims.

Thursday’s Economic Data: Key Highlights

  • In the final quarter of 2023, U.S. economic activity advanced at a 3.4% annualized pace compared to the previous quarter, above the 3.2% recorded in the second estimate.
  • This growth in the real GDP represents a deceleration from the 4.9% rate recorded in the third quarter of 2023, attributed to decreased private inventory investment, slowdowns in federal government spending and residential fixed investment.
  • The third estimate reflects upward revisions to consumer spending, nonresidential fixed investment and state and local government spending. These gains were partially offset by downward revisions to private inventory investment and exports. Additionally, imports were revised downward.
  • The Personal Consumption Expenditure (PCE) price index was upwardly revised from 1.7% to 1.8% in the third estimate.
  • The growth in the nominal GDP was upwardly revised from 4.9% to 5.1% in the third reading, to a level of $27.96 trillion, higher than the previous $27.94 trillion.
  • Disposable personal income rose by $190.4 billion, or 3.8%, in the fourth quarter, marking a downward revision of $12.1 billion from the previous estimate. Real disposable personal income increased by 2%, reflecting a downward revision of 0.2 percentage points.
  • Initial jobless claims increased by 210,000 in the week ending March 23, down from the previous 212,000, and below the expected 215,000.

Market Reactions

The U.S. dollar index (DXY), as tracked by Invesco DB USD Index Bullish Fund ETF , traded 0.3% higher on Thursday morning following hawkish remarks from Fed’s Governor Christopher J. Waller.

Traders have marginally reduced their expectations for an interest rate cut in June, now suggesting a 64% probability of such an outcome, down from 70% the previous day.

Futures on major U.S. averages traded flat during premarket trading on Thursday. The SPDR S&P 500 ETF Trust reached an all-time high close at $523.17 on Wednesday.

Originally Posted MarchUS Economic Growth Upwardly Revised To 3.4% In Q4, Jobless Claims Slow: Thursday’s Economic Digest 

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclosure: Benzinga

© 2022 Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: ETFs

Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.