The U.S. economy maintained a steady growth rate, with the GDP expanding at an unrevised 2.3% annualized pace in the last quarter of 2024, aligning with expert forecasts. Yahoo Finance reports that the Bureau of Economic Analysis confirmed these figures in their second GDP estimate for the fourth quarter, consistent with the earlier advanced estimate.

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This growth deceleration from the 3.1% rate observed in the third quarter was primarily influenced by increased consumer and government spending, counterbalanced by a decline in investment. Such trends echo insights from the IndexBox platform, which further illustrates the nuanced shifts within key economic sectors. The final GDP growth estimate for this period will be revealed at the end of March.

In the backdrop of this economic update, concerns persist surrounding potential impacts from President Trump’s tariff strategies, which analysts suggest could decelerate growth and elevate inflation. With consumer confidence witnessing its steepest drop in nearly four years, as cited in the recent consumer sentiment data, apprehensions about tariffs and the broader Trump 2.0 policy ramifications remain pronounced. The upcoming projections anticipate a continued steady economic expansion, with the Atlanta Fed GDPNow tracker forecasting a similar growth rate of 2.3% for the current quarter.

Source: IndexBox Market Intelligence Platform