The American economy grew at a solid 2.3% annual rate the last three months of 2024, supported by a burst of year-end consumer spending, the government said, leaving unchanged its initial estimate of fourth-quarter growth, according to the Associated Press.
The Commerce Department reported Thursday that growth in gross domestic product — the nation’s output of goods and services — decelerated from a 3.1% pace in July–September 2024. For all of last year, the economy grew 2.8%, compared with 2.9% in 2023.
Consumer spending advanced at a 4.2% pace from October–December. Business investment fell in the fourth quarter, pushed lower by a 9% drop in equipment spending. A drop in business inventories shaved 0.81 percentage points off October–December growth.
However, a category within the GDP data that measures the economy’s underlying strength rose at a healthy 3% annual rate from July–September, slipping from 3.4% in the third quarter and down slightly from the government’s initial estimate. This category includes consumer spending and private investment but excludes volatile items like exports, inventories, and government spending.
Thursday’s GDP report was the second of three Commerce Department looks at fourth-quarter economic growth. The final estimate comes out March 27.
