ICYMI: Ten Charts That Explain the U.S. Economy in 2023—Charts 2 & 3: Manufacturing Investment Reached Historic Highs

The U.S. economy defied expectations this year. Many forecasters predicted a recession, some even asserting a "100%" probability of a recession. President Biden never believed that was necessary—and he was right.

Instead of a recession, inflation is down to 2% over the last six months, unemployment has stayed below 4% for 22 months in a row, and wages, wealth, and income are all higher now than they were before the pandemic began. While there is more work to do—from lowering prescription drug and energy costs to cracking down on price gouging by banning hidden junk fees and calling on corporations to pass savings on to consumers—this year has brought remarkable progress.

The Council of Economic Advisers is highlighting ten charts that capture the most important economic developments of the past year. They depict an economy growing from the middle out and bottom up—powered by Bidenomics.

Charts 2 and 3:

Manufacturing investment reached historic highs.

In 2023 Q3, real (inflation-adjusted) private manufacturing construction investment reached its highest level on record since 1958. Likewise, manufacturing construction contributed the most to year-on-year real GDP growth on record. A major factor in this historic manufacturing boom has been the Inflation Reduction Act.

Read the full blog here.