The U.S. Bureau of Economic Analysis reported that the real gross domestic product (GDP) grew at an annual rate of 2.3 percent in the fourth quarter of 2024, spanning October to December. This follows a 3.1 percent increase in the third quarter.
The rise in GDP during the fourth quarter was largely due to increases in consumer and government spending, although there was a decline in investment. Imports, which subtract from GDP calculations, decreased during this period.
Compared to the previous quarter, the slower growth rate was mainly attributed to downturns in investment and exports, with imports also declining.
The price index for gross domestic purchases rose by 2.2 percent in the fourth quarter, up from a 1.9 percent increase in the third quarter. The personal consumption expenditures (PCE) price index went up by 2.3 percent compared to a previous increase of 1.5 percent. Excluding food and energy prices, the PCE price index saw a rise of 2.5 percent compared to an earlier increase of 2.2 percent.
For the entire year of 2024, real GDP increased by 2.8 percent from its level in 2023 when it had risen by 2.9 percent. This annual growth was driven by increases across consumer spending, investment, government spending, and exports while imports also rose.
In terms of pricing indices for all of 2024, the price index for gross domestic purchases increased by 2.3 percent compared to a higher increase of 3.3 percent in the previous year; similarly, the PCE price index increased by 2.5 percent following a larger rise of 3.8 percent last year.
Looking ahead, further updates on these figures are expected with the next release scheduled for February 27, 2025.
Hurricane Milton's impact on economic activities during this period is acknowledged but not separately identified within these estimates due to data limitations regarding its specific effects on GDP components like fixed assets destruction or personal income adjustments.