The US economy expanded at an annualised rate of 2.4 per cent in the fourth quarter of 2024, the Commerce Department said in its final report. Earlier it was reported a less significant rise of 2.3 per cent. Analysts polled by Trading Economics did not expect a revision to the previously announced estimate.
GDP growth slowed from the third quarter’s 3.1 per cent.
Consumer spending, which accounts for two-thirds of the US economy, rose 4 per cent in October-December (previously reported at 4.2 per cent). The increase was the highest since the first quarter of 2023. In particular, spending on goods increased by 6.2% (previously reported growth of 6.1%), services – by 3% (3.3%).
Government spending growth was 3.1% rather than 2.9%.
Investment in fixed assets fell by 1.1% (previously reported to be down by 1.4%). The decline was recorded for the first time since the end of 2022. In particular, investment in non-residential assets decreased by 3%, while investment in the residential sector increased by 5.5%. Investments in intellectual property decreased by 0.5 per cent and in equipment by 8.7 per cent.
Exports were down 0.2% and imports were down 1.9%. Earlier it was announced that the first indicator decreased by 0.5%, the second – by 1.2%.
Corporate profits in the US in October-December grew by 5.9% quarter-on-quarter to $3.312 trillion, after a 0.4% decline a quarter earlier. On a year-over-year basis, corporate profits rose 6.8%.
The PCE Consumer Price Index increased 2.4% in the fourth quarter from the previous three months, the figure was not revised.
The PCE Core index (change in consumer prices excluding food and energy costs), which is closely monitored by the Federal Reserve when assessing inflation risks, rose 2.6%, not 2.7%.
For all of 2024, the U.S. economy expanded 2.8% after climbing 2.9% a year earlier.
Preliminary data on the dynamics of US GDP for the first quarter of 2025 will be released on 30 April.