US GDP Growth Decelerated by 0.7% in Q4 Ahead of Trump Transition
Consumer and government spendings increase sustained economic growth despite the drop from Q3’s 3.1%
The growth rate of the U.S. economy dipped by 0.7% in the fourth quarter of 2024. The real gross domestic product (GDP) grew at an annual rate of 2.4% amid the uncertainties of the Trump transition. In the third quarter of 2024, the economy grew by 3.1%, said a report of the Bureau of Economic Analysis, detailing the third estimate.
Watch video: Canadian Prime Minister Carney calls Trump's auto tariffs a 'direct attack' on his country
The increase in real GDP in the fourth quarter mainly reflected increases in consumer spending and government spending. But these increases were partly offset by a decrease in investments. Imports, which are a subtraction in the calculation of GDP, decreased.
The real GDP growth was revised upwards by 0.1 percentage point in the current third estimate from the second estimate, mainly reflecting a drop in imports.
Compared to the third quarter, the deceleration in real GDP in the fourth quarter primarily resulted from downturns in investment and exports that were partly offset by an acceleration in consumer spending. Imports turned down, the report said.
Industry-based GDP growth
The increase in real GDP from an industry perspective was 2.3% in real value added for private goods-producing industries, an increase of 2.4% for private services-producing industries, and an increase of 2.7% for government.
Real gross output rose 1.7% in the fourth quarter, reflecting an increase of 0.3% for private goods-producing industries, an increase of 2% for private services-producing industries, and an increase of 3.1% for government.
Meanwhile, the price index for gross domestic purchases increased 2.2% in the fourth quarter, revised down 0.1 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 2.4 percent, the same as previously estimated. Excluding food and energy prices, the PCE price index increased 2.6 percent, revised down 0.1 percentage point from the previous estimate.
Real gross domestic income (GDI) increased 4.5 percent in the fourth quarter compared with an increase of 1.4 percent in the third quarter, according to the report.
Related News:
