4th Quarter GDP Beats Market Estimates; Consumers, Government Drive Growth

New government data show that the U.S. economy slowed in the fourth quarter but still finished 2024 on a solid footing. According to the Bureau of Economic Analysis’s third estimate for the fourth quarter of last year, the GDP growth rate was 2.4 percent, down from the previous quarter’s 3.1 percent. The consensus forecast indicated a 2.3 percent reading for the October–December period. The last estimate was also revised 0.1 percent higher for the final three months of 2024. Last quarter’s expansion was fueled mainly by increases in consumer spending and government expenditures, which partly offset the decline in investment. Consumer spending surged by 4 percent, reflecting a 6.2 percent jump in goods and a 3 percent gain in services....