The US has released its latest GDP figures, showing an economy growing faster than anticipated. The data beat market expectations and sent NY shares to new all-time highs.
The GDP figure released by the Commerce Department on Thursday showed the economy grew at an annualized rate of 3.3 percent in real terms in the October-to-December period.
This marks the 6th consecutive quarter of expansion and surpassed market expectations of about 2 percent.
Personal consumption, which accounts for about 70 percent of the GDP, was up 2.8 percent, partly due to good sales during the year-end shopping season.
Government spending climbed by 3.3 percent.
For all of 2023, the US economy expanded 2.5 percent.
That is a rise from the previous year, which saw 1.9 percent growth.
The US Federal Reserve has been raising its key interest rate since March 2022.
The rate is now at its highest level in about 23 years but the country’s economy is still posting vigorous growth.
Some experts believe that Fed policymakers may decide to start lowering interest rates as early as their March meeting.
But others feel the timing of rate cuts may change if the economy continues strong.
At the New York Stock Exchange, the Dow Jones Industrial Average hit a fresh record high after the better-than-expected GDP figures.
The index closed on Thursday at 38,049, up 242.74 points from the previous day.
Crude oil also reacted. The WTI futures price, an indicator of international trading, rose to 77 dollars a barrel at one point for the first time in about two months.
There is a growing view that crude oil demand will increase due to a decline in US inventory.
Market sources say that investors have become more confident that the US economy will also remain robust this year.
