U.S. Economic Growth Slows in Q4 Despite Beating Expectations: The U.S. economy saw a noticeable slowdown in growth during the fourth quarter of 2024;
However, it still exceeded expectations and was supported by strong consumer and government spending.
While investments and exports declined due to mounting geopolitical and trade tensions,
data showed that GDP grew by 2.4%, reflecting the economy’s resilience in the face of challenges.
Meanwhile, the U.S. labor market continued to show strength,
with jobless claims falling and layoffs remaining low—further boosting confidence in the economic outlook.

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U.S. economic growth slowed in the final quarter of 2024 but surpassed expectations
thanks to rising consumer and government spending despite declining investment and export pressures.
According to the third estimate of GDP released on Thursday,
the economy expanded at an annual rate of 2.4%, compared to 3.1% in the third quarter.
However, this was better than the second estimate of 2.3% and beat analysts’ forecasts,
driven by a downward revision in imports.
For 2024, the growth rate remained steady at 2.8%, unchanged from previous estimates.
This reflects the continued relative strength of the U.S. economy despite escalating geopolitical and trade challenges.
The Bureau of Economic Analysis kept its estimate
for the Personal Consumption Expenditures (PCE) price index at 2.4%, core inflation
the Federal Reserve’s preferred gauge—was revised to 2.6% from 2.7%,
compared to 2.2% in Q3. This revision may offer the Fed some flexibility in its future monetary policy decisions.
Despite these strong figures, uncertainty remains over the U.S. economy’s ability to sustain
this momentum amid the intensifying trade war led
by President Donald Trump and his push for austerity measures
that include reducing government jobs and deporting undocumented workers.
In a related development, jobless claims for the week ending March 21
fell to 224,000—below expectations of 225,000.
This points to the continued strength of the U.S. labor market
and a decline in layoff activity, reinforcing confidence in the economy.
Investors are closely watching upcoming employment and inflation data
to gauge the Federal Reserve’s future path on interest rates.
With the labor market remaining robust, the central bank may delay any potential rate cuts,
which could influence market trends in the coming months.

U.S. Economic Growth Slows in Q4 Despite Beating Expectations

U.S. Economic Growth Slows in Q4 Despite Beating Expectations

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