A worker sorting products through Cyber Monday at the Al -Wafa Center at Amazon in Robbinsville, New Jersey, USA, November 27, 2023.
Mike Fresh Reuters
US economic growth has slowed more than expected in the last three months of 2024, the Ministry of Commerce said on Thursday.
GDP, a measure of all goods and services produced across the growing American economy during this period, showed that the economy accelerated an annual pace of 2.3 % in the fourth quarter. The economists surveyed by Dow Jones expected a 2.5 % increase after 3.1 % growth in the third quarter.
The report is closed in 2024 with a fairly increasing observation, although growth maintains a reasonable solidity. For the full year, GDP accelerated by 2.8 %, compared to 2.9 % in 2023. Thursday's launch was the first of three estimates of the Ministry's economic analysis office.
The growth has greatly stood on the emergence of consumers who continued to spend it despite the constant burden of high prices on everything from homes to cars to eggs in the supermarket. While inflation is out of boiling from the highest level in mid -2012 for 40 years, it still represents a burden on families, especially those on the lower end of the income scale.
Consumer spending increased at a strong pace by 4.2 %, and as usual, about two -thirds of all activity. Government spending also provided a batch, an acceleration at a level of 3.2 %.
Trade was a traction in growth in this period, with imports, which are offered from the gross domestic product account, off 0.8 %. Exports also decreased 0.8 %. The total domestic investment decreased by 5.6 %, flying more than a full percentage of the highest lines.
The flexibility of the American economy and relative obedience to inflation of the Federal Reserve allowed the patient's position on monetary policy. Although the Federal Reserve reduced the main interest rate by a full percentage in the past four months of 2024, officials indicated that aggressive discounts are not likely this year.
At the recently ended Federal Reserve meeting, Central bankers did not provide any indication that they expect discounts anytime, as President Jerome Powell insisted that he is not in a hurry.
Federal reserve officials were expressing some concern about whether inflation moves had stopped. A report on Thursday showed that the so -called weighted price index, which measures prices and causes consumers replaces less expensive products for the most expensive elements, an increase of 2.2 % over a quarter, and a faster 1.9 % step in Q3 but slightly less than 2.3 % estimate.
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