US economy grew solid 3.2% in fourth quarter, a slight downgrade from government's initial estimate

The U.S. economy grew at a robust 3.2% annual pace from October through December, propelled by healthy consumer spending, the Commerce Department reported Wednesday in a slight downgrade from its initial estimate.

The expansion in the nation's gross domestic product — the economy's total output of goods and services — slipped from a red-hot 4.9% from July through September. The fourth-quarter GDP numbers were revised down from the 3.3% pace Commerce initially reported last month. U.S. growth has now topped 2% for six straight quarters, defying fears that high interest rates would tip the world's largest economy into a recession.

Far from stumbling, the economy grew 2.5% for all of 2023, topping the 1.9% growth in 2022.

The United States is expected to keep churning in 2024. The International Monetary Fund expects the American economy to expand 2.1% this year — more than twice its forecasts for growth in the major advanced economies Japan, Germany, the United Kingdom, France and Italy.

Voters are weighing the economy's health in advance of November's presidential election. Many Americans are exasperated with high prices and blame President Joe Biden. Although inflation has eased and hourly wage hikes have beaten price increases over the past year, consumer prices are still 17% higher than they were three years ago.

In response to resurgent inflation, the Federal Reserve raised its benchmark interest rate 11 times between March 2022 and July 2023, taking it to the highest level in more than two decades. Higher borrowing costs have reined in the inflationary surge. Last month, consumer prices were up just 3.1% from January 2023, down from a peak of 9.1% in June 2022 and coming closer to the Fed's 2% target.

To the surprise