US GDP Growth Rate Unrevised at 2.3%
The US economy expanded an annualized 2.3% in Q4 2024, the slowest growth in three quarters, down from 3.1% in Q3 and in line with the advance estimate. Personal consumption remained the main driver of growth, increasing 4.2%, the most since Q1 2023, in line with the advance estimate.
Spending rose for both goods (6.1%) and services (3.3%). Also, exports fell slightly less (-0.5% vs -0.8%) and imports declined slightly more than initially anticipated (-1.2% vs -0.8%), leaving the contribution from net trade positive at 0.12 pp. Government expenditure also rose more (2.9% vs 2.5%).
Private inventories cut 0.81 pp from the growth, less than 0.93 pp. On the other hand, fixed investment contracted more (-1.4% vs -0.6%), due to equipment (-9% vs -7.8%) and structures (-1.1%) and as investment in intellectual property products failed to rise (0% vs 2.6%).
Residential investment rose more than initially anticipated (5.4% vs 5.3%). Considering full 2024, the economy advanced 2.8%.
Source: Trading Economics
