The US economy ended 2024 with a solid note with the consumer spending that continues to drive growth.
The Commerce Department reported Thursday that the Gross Domestic Product, the production of goods and services of the economy, expanded at an annual rate of 2.3% from October to December.
Throughout the year, the economy grew a healthy 2.8%, compared to 2.9% in 2023.
The growth of the fourth quarter was a tick below the 2.4% that economists expected, according to a prognosticadores survey of the FACTSET data firm.
Consumer spending grew at a rate of 4.2%, faster from January-March 2023 and 3.7% in July to September last year. But business investment fell as team investment fell after two strong consecutive rooms.
Wednesday’s report also showed a persistent inflation at the end of 2024. The Federal Reserve Fatient Inflation Meter, called Personal Consumption Expenses Index, or PCE, increased at an annual rate of 2.3% in the last quarter, front, front to 1.5% in the third quarter and above the objective of 2% of the Fed. Excluding volatile food and energy prices, the so -called central PCE inflation was 2.5%, compared to 2.2% in the quarter of July to September.
A fall in business inventories razed 0.93 percentage points of the growth of the fourth quarter.
But a category within the GDP data that measures the underlying force of the economy increased at an annual rate of 3.2% healthy from July to September, falling from 3.4% in the third quarter. This category includes consumer spending and private investment, but excludes volatile articles such as exports, inventories and governmental expenses.
Paul Ashworth, chief economist of North America of Capital Economics, said the figure “suggests that the economy remains strong, particularly given the interruptions of the fourth quarter,” including a strike in Boeing and the aftermath of two hurricanes.
President Donald Trump has inherited a healthy economy. Growth has been stable and low unemployment: 4.1% in December.
Wednesday, the Fed left its reference interest rate without changes After making three cuts since September. With the economy advancing, the president of the Fed, Jerome Powell, told reporters: “We do not need to be in a hurry” to make more cuts. The Fed is also cautious because progress against inflation has stagnated in recent months after falling four decades. The maximums hit in mid -2012.
The European Central Bank reduced its reference rate in a quarter quarter on Thursday, underlining the contrast between a stronger growth in the economy of the United States and stagnation in Europe, which recorded zero growth at the end of last year.
However, the economic perspective of the United States has become more cloudy. Trump has promised to reduce taxes and relieve business regulations, which could accelerate GDP growth. But his plan to impose great imports on imports and deport millions of immigrants who work illegally in the United States could mean a slower growth and higher prices.
Trump said last week that he would reduce oil prices and then “demand” lower interest rates, a topic that said he would be in charge of Powell. But the president of the Fed diverted the questions about Trump’s comments on Wednesday and said he had not had contact. With the president.
Trump has also tried to remodel the federal government, offering purchases to workers and issuing a memorandum on Monday night freezing federal subsidies, then rescinding the memorandum on Wednesday after a public protest.
Citing the “squeeze” about the federal government, Ashworth wrote in a comment: “We would not surprise us to see a reversal in the first quarter. As a starting point, we hope that the growth of the GDP of the first quarter decreases marginally below 2%’ ‘.
The launch of GDP on Thursday was the first of the three estimates of the Growth Commerce Department from October to December.
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