US Q4 GDP Growth Slows to 2.3% Amid Rising Consumer Spending

Q4 2024 US GDP estimates indicate a slowdown in growth, with an annual increase of 2.8%, down from 2.9% in 2023. Inflation-adjusted GDP for Q4 was 2.3%, lower than the projected 2.4%. Q3 GDP was revised to 3.1%.

Personal spending rose by 4.2% annually, primarily in healthcare and recreational goods. Some analysts suggest this uptick may reflect price increases rather than real growth.

The Federal Open Market Committee (FOMC) decided to maintain interest rates, with Chair Powell emphasizing caution regarding rate cuts amidst uncertainties from pending tariff policies.

Key points include:

Q4 GDP growth at 2.8%
Inflation-adjusted GDP at 2.3%
Personal spending increased by 4.2%
FOMC holds interest rates
Concerns over potential tariffs impacting economic forecasting
Slight decline in imports and inventories