GDP Grew at a 2.3% Pace in the Fourth Quarter, Less Than Expected

Us Economic Growth Slowed a Bit More than expected in the Final Three Months of 2024, The Commerce Department Reported CHURSDAY.

Gross Domestic ProductA measure of all the goods and services produced across the sprawling us economy during the period, showed that the economy accelerated at a 2.3% annualized pace in the fourth Quarter. Economists surveyed by down

The report closes out 2024 on a somewhat downbeat Note, Thought Growth Held Reasonal Solid. For the full year, GDP Accelerated 2.8%, Compared with 2.9% in 2023. Chiursday’s release was the first of three establishs the department’s bureau of economic analysis will provide.

Growth help up larger on the backs of consumers who continued to spend briskly despite the ongoing burden of high prices on everything from homes to care to the supermarket. While inflation is well off the boil from its mid-2022 40-year high, it remains a burden for households, particularly that on the lower end of the income scale.

Consumer Spending Rose at a Robust 4.2% Pace and, as Usual, Amounted to About Two-Thirds of All Activity. Government Spending also provided a boost, accelerating at a 3.2% level.

Trade was a drag on growth in the period, with imports, which subtract from the gdp calculation, off 0.8%. Exports also declined 0.8%. Gross Private Domestic Investment Slumped By 5.6%, Shaving more than a full percentage point off the topline number. An Easing in Inventories also Cut Nearly 1 Percentage Point.

In other Economic News THUSDAY, Initial UNEMPLOYMENT Claims Totled 207,000 for the Week Ending Jan. 25, A Sharp Decline of 16,000 from the Prior Period and Well Bell the Forecast for 228,000, The Labor Department Reported. Continuing claims, which run a week behind, also fell, down 42,000 to 1.86 million.

The resilience of the US economy and the relative decision in inflation has allowed the federal reserve to assume a patient a patient on monetary policy. Thought the fed cut its key interest rate by a full percentage point in the last four months of 2024, officials have indicated that aggressive reductions are unlikely this year.

At the Recently concluded fed meetingCentral Bankers Gave No Indication that they are expecting cuts anytime song, with Chair jerome power power insisting that he is in no hurry to ease.

Fed Officials Have Been Expressing Some Concern About Whiteer The Moves Lower in Inflation has stalled. Thursday’s report showed that so-called chain-wheedted price index, which measures prices and accounts for consucers substituting lesses-axpensive products for more cost. Er, Faster than the 1.9% move in the third quarter but slightly Below the 2.3% estimate.

However, the data also showed that consumers are dipping into savings to fund their purchase. The personal saving rate was 4.1%, down 0.2 percented point from the prior quarter, for the lowest level in two.