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U.S. GDP growth slows to 2.4% in Q4 2024 amid trade tensions
The U.S. economy expanded at an annualized rate of 2.4% in the fourth quarter of 2024, marking a deceleration from the previous quarter's 3.1% growth.
Consumer spending: Remained a primary driver of growth, bolstered by increased expenditures in services and non-durable goods.
Government spending: Contributed positively, particularly at the federal level, with notable increases in defense expenditures.
Private investment: Experienced a downturn, with declines in both residential and non-residential sectors.
Consumer spending
Consumer expenditures continued to underpin economic growth, with significant contributions from the services sector, including healthcare and recreation. Non-durable goods, such as clothing and food, also saw increased spending, reflecting sustained consumer confidence.
Government spending
Federal government spending provided a boost to GDP, driven by heightened defense outlays. This uptick offset some of the weaknesses observed in other components of the economy.
Private investment
The quarter witnessed a contraction in private investment, with both residential and non-residential segments facing declines. Factors contributing to this downturn include trade uncertainties and cautious business sentiment amid evolving economic policies.
US initial jobless claims
Initial jobless claims in the United States decreased by 1,000 to 224,000 in the week ending March 22, marginally below market expectations of 225,000, to remain at historically low levels.
