U.S. Economy Ends 2023 With Surprisingly Strong Growth

US Economy
Published

The U.S. economy grew at a surprisingly strong pace in the fourth quarter, fueled primarily by resilient consumer spending.

According to the first estimate released by the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 3.3% in the fourth quarter of 2023, following a 4.9% gain in the third quarter. It marks the sixth consecutive quarter of growth.

Consumer spending, the backbone of the U.S. economy, rose at an annual rate of 2.8% in the fourth quarter. Expenditures on services increased 2.4% at an annual rate and spending on goods grew at a 3.8% annual rate, led by other nondurable goods (+5.1%) and recreational goods and vehicles (+10.9%). 

Housing continued its strong contribution to the U.S. economy last quarter. Residential fixed investment grew 1.1% in the fourth quarter, down from a 6.7% increase in the third quarter. Within residential fixed investment, single-family structure investment grew at an 11.6% annual rate, improvements rose 5.5%, and multifamily structures declined 1.0%.

For the full year, real GDP increased 2.5% in 2023, up from a 1.9% increase in 2022, and slightly better than NAHB’s forecast of 2.4%.

Read the rest of the analysis of 2023 GDP in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS | Leading Suppliers Council

Oct 23, 2025

IBS 2026 Exhibit Home Aims for Groundbreaking Energy-Efficiency Rating

For anyone curious about how far today’s innovative building products can take a home’s performance, The New American Home 2026 is the must-see showcase at the upcoming Builders’ Show, taking place Feb. 17–19.

Workforce Development

Oct 22, 2025

NAHB Generates Enthusiasm for the Trades During the Big Build

NAHB recently introduced thousands of students to the skilled trades during The Big Build event at the National Building Museum in Washington, D.C.

View all

Latest Economic News

Economics

Oct 20, 2025

Non-Conventional Financing for New Home Sales Loses Ground in 2024

Nationwide, the share of non-conventional financing for new home sales accounted for 31% of the market per NAHB analysis of the 2024 Census Bureau Survey of Construction (SOC) data. This is 1.7 percentage point lower than the 2023 share of 32.4%. As in previous years, conventional financing dominated the market at 69.3% of sales, higher than the 2023 share of 67.6%.

Economics

Oct 17, 2025

Better Growth, Larger Deficits: CBO Fiscal Outlook

The Congressional Budget Office (CBO) is a key nonpartisan score keeper that measures the effects of policy changes by the Federal Government. With several policy changes since January of this year, including the One Big Beautiful Bill Act (OBBBA), stricter immigration, and higher tariffs, the CBO updated its economic projections through 2028.

Economics

Oct 16, 2025

Amid Market Challenges, Builder Expectations Rise in October

Even as builders continue to grapple with market and macroeconomic uncertainty, sentiment levels posted a solid gain in October as future sales expectations surpassed the 50-point breakeven mark for the first time since last January.