The U.S. economy expanded at a 2.4% annualized rate in the fourth quarter of 2024, the Commerce Department said in its final report. A smaller rebound of 2.3% was previously reported. Analysts polled by Trading Economics did not expect a revision to the previously announced estimate.
GDP growth slowed from the third quarter, when it was 3.1%.
Consumer spending, which accounts for two-thirds of the U.S. economy, rose 4% in October-December (previously reported at 4.2%). The increase was the highest since the first quarter of 2023. This included a 6.2% increase in spending on goods (previously reported at 6.1%) and a 3% increase in spending on services (up 3.3%).
Government spending growth was 3.1% rather than 2.9%.
Investment in fixed assets fell 1.1% (previously reported down 1.4%). The decline was recorded for the first time since the end of 2022. This included investment in non-residential assets down 3%, while residential investment rose 5.5%. Investment in intellectual property was down 0.5% and equipment was down 8.7%.
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 U.S. in October-December increased by 5.9% quarter-on-quarter to $3.312 trillion, after a decline of 0.4% 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 U.S. GDP trends for the first quarter of 2025 will be released on April 30.
