The economic growth of the United States has slowed a little more than expected in the last three months of 2024, the trade department reported on Thursday.
The gross domestic product, a measure of all the goods and services produced in the troking American economy during the period, showed that the economy accelerated at an annualized rate of 2.3% in the fourth quarter. Economists interviewed by Dow Jones expected an increase of 2.5% after growth of 3.1% in the third quarter.
The report finished 2024 on a somewhat lowered note, although growth has been reasonably solid. For the whole year, GDP accelerated 2.8%, compared to 2.9% in 2023. The release of Thursday was the first of three estimates that the department’s economic analysis office will provide.
Growth has largely resisted on the backs of consumers who continued to spend strongly despite the continuous burden on high prices on everything, from houses to cars to eggs to the supermarket. Although inflation is well broken from its level of 4022 years, there remains a burden for households, in particular those which are lower than the income scale.
Consumer spending increased at a robust 4.2% pace and, as usual, rose to around two thirds of all activities. Public spending also provided a boost, accelerating at a level of 3.2%.
Trade was a training in the growth of the period, imports, which subtract from the calculation of GDP, on 0.8%. Exports also decreased by 0.8%. The gross private interior investment dropped by 5.6%, razing more than a full point of the line number. A relaxation of stocks has also reduced near a percentage point.
In other economic news Thursday, initial unemployment requests totaled 207,000 for the week ending on January 25, a sharp drop of 16,000 compared to the previous period and well below 228,000 forecasts, reported The Labor Department. Continuous complaints, which take place a week late, also dropped, down 42,000 to 1.86 million.
The resilience of the American economy and the relative deceleration of inflation allowed the federal reserve to assume a patient position on monetary policy. Although the Fed has reduced its key interest rate from a complete percentage point in the last four months of 2024, those responsible have indicated that aggressive reductions are unlikely this year.
During the recently finished Fed meeting, central bankers have given no indication that they expect discounts of any time, President Jerome Powell insisting that he is not in a hurry to facilitate the ease.
Fed officials expressed some concern about the decline in inflation movements. Thursday’s report has shown that the so-called chain weighted price index, which measures prices and explains that consumers substituting cheaper products with more expensive items, increased by 2.2% over the quarter, Quickly that the movement of 1.9 % in the third quarter but slightly below 2.3 % estimate.
However, data has also shown that consumers plunge into savings to finance their purchases. The personal saving rate was 4.1%, down 0.2 percentage points compared to the previous quarter for the lowest level in two years.
