US GDP Growth Revised Higher in Q4
The US economy expanded an annualized 2.4% in Q4 2024, slightly higher than 2.3% in the previous estimates, primarily reflecting a downward revision to imports.
Exports fell slightly less (-0.2% vs -0.5%) and imports declined more than initially anticipated (-1.9% vs -1.2%), leaving the contribution from net trade positive at 0.26 pp (vs 0.12 pp).
Government expenditure also rose more (3.1% vs 2.9%) and fixed investment contracted less (-1.1% vs -1.4%), due to equipment (-8.7% vs -9%) while investment in intellectual property products shrank (-0.5% vs 0%). Residential investment rose at a faster pace than initially anticipated (5.5% vs 5.4%).
Meanwhile, personal consumption remained the main driver of growth, increasing 4%, slightly less than 4.2% in the previous estimate, but remaining the biggest gain since Q1 2023. Spending rose for both goods (6.2% vs 6.1%) and services (3% vs 3.3%). Private inventories cut 0.84 pp from the growth, more than 0.81 pp in the previous estimate.
Source: Trading Economics
