US economy grows 3.3%, NY Dow renews record high

The US has released its latest GDP figures and the economy is growing faster than expected. The data beat market expectations and sent NY stocks to new all-time highs.

Gross domestic product data 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-December period.

This was the 6th consecutive quarter of expansion and beat market expectations by about 2 percent.

Personal consumption, which accounts for 70 percent of GDP, rose 2.8 percent, driven by good sales during the year-end shopping season.

Government expenditure rose by 3.3 percent.

For all of 2023, the U.S. economy expands by 2.5 percent.

This has seen a growth of 1.9 percent over the previous year.

The US Federal Reserve has been raising its key interest rate since March 2022.

The ratio is now at its highest level in about 23 years, but the country's economy is still registering vigorous growth.

Some experts believe central bank policymakers could begin cutting interest rates at their March meeting.

But others think the timing of rate cuts could change if the economy continues to strengthen.

On the New York Stock Exchange, the Dow Jones Industrial Average hit a fresh record after better-than-expected GDP figures.

The index closed at 38,049 on Thursday, up 242.74 points from the previous day.

Crude oil also reacted. WTI futures, a benchmark of international trade, rose to $77 a barrel at one stage for the first time in nearly two months.

There is a growing perception that US stockpile depletion will increase demand for crude oil.

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Investors are more optimistic that the US economy will also be strong this year, market sources said.

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