The US economy ended in 2024, consumer expenditures continued to grow and ended with solid notes.
The Ministry of Commerce reported on Thursday that the gross domestic product (the production of economic products and services) has expanded 2.3 % from October to December.
During the year, the economy grew 2.8 % compared to 2.9 % in 2023.
According to a data company’s FactSet forecasts, the fourth quarter growth was less than 2.4 % of the 2.4 % economists expected.
Consumer spending grew at a pace of 4.2 % from July to September, 2023 from March 2023 to 3.7 % from March to March. However, business investment fell as investment in equipment dropped sharply after the two straight and powerful quarter.
Wednesday reports also showed sustainable inflation pressure at the end of 2024. The federal preparation system’s support influct (a personal consumption expenditure index, a PCE) rises at a pace of 2.3 %, 1.5 % in the third quarter, 2.3 %, 2.3 %, and exceeds the 2.3 % goal of Fed. Masu. Except for unstable foods and energy prices, so -called core PCE inflation increased from 2.2 % from July to September 2.2 %.
The decline in business inventory has shaved 0.93 % points from the fourth quarter growth.
However, the category in the GDP data, which measures the strength at the root of the economy, increased at a 3.2 % annual rate from July to September, from 3.4 % in the third quarter. This category includes consumer spending and private investment, but unstable items such as exports, stocks, and government expenditures are excluded.
“It suggests that the economy remains strong, especially in the fourth quarter,” said Paul Asuworth, a North American economist in capital economics.
President Donald Trump inherits a healthy economy. Growth is stable, unemployment rate is low, 4.1 % in December.
Wednesday, FRB The benchmark interest rate has not changed After three cuts from September. As the economy is progressing, the Fed’s Jerome Powell told reporters, “We don’t have to be in a hurry.” Hit high in the middle of 2022.
The European Central Bank has reduced the benchmark rate to the quarter on Thursday, emphasizing the contrast between the US economy in Europe, which recorded zero growth at the end of last year.
However, the US economic outlook is cloudy. Trump has promised to reduce taxes and facilitate business regulations. However, his plan to impose large taxes on imports and hire millions of immigrants who work illegally in the United States can mean losing growth and rising prices.
Mr. Trump said last week that he would “demand” after lowering the petroleum price. He said he would take it with Powell. With the president.
Trump also tried to reconstruct the federal government, provided an acquisition to workers, issued a memo to freeze the federal subsidy on Monday night, and tried to withdraw notes after a public protest on Wednesday.
Quoting the federal government’s “Squeeze”, Ashworth writes as follows. “You will not be surprised to see the reversal in the first quarter. As a starting point, we expect that GDP growth in the first quarter will be less than 2 %.”
Thursday’s GDP release was the first estimation of the three Ministry of Commerce, from October to December.
