In 2024, the U.S. economy demonstrated sturdy growth, with a GDP increase of 2.3% in Q4 and an annual growth rate of 2.8%. Consumer spending surged at 4.2%, marking the fastest increase since early 2023. However, business investment faced a decline, notably in equipment, raising concerns. Inflation remains persistent, with core PCE inflation rising to 2.5% in Q4. The Federal Reserve maintained interest rates following prior cuts, reflecting the stable but cautious economic environment.
The American economy ended 2024 on a solid note, with consumer spending continuing to drive growth, expanding at a 2.3% annual rate from October through December.
Consumer spending grew at a 4.2% pace, the fastest since January-March 2023, significantly contributing to the economic growth in the last quarter.
Persistent inflationary pressure was evident at the end of 2024, with the core PCE inflation rising to 2.5%, a notable increase from the previous quarter.
Despite growth, business investment tumbled, particularly in equipment, marking a downturn after two consecutive strong quarters.
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