Real gross domestic product (GDP) in the United States increased at an annual rate of 2.3 percent in the fourth quarter of 2024, according to the U.S. Bureau of Economic Analysis' second estimate. This growth is a decrease from the third quarter's increase of 3.1 percent.
The fourth-quarter GDP growth was driven by increases in consumer and government spending, though it was partly offset by a decline in investment. Imports, which negatively affect GDP calculations, decreased during this period.
The GDP estimate for the fourth quarter was revised upward by less than 0.1 percentage point from the initial estimate due to higher-than-expected government spending and exports. However, there were downward revisions to consumer spending and investment.
When compared to the previous quarter, the slowdown in GDP growth was mainly due to declines in investment and exports, which were only partially counterbalanced by stronger consumer spending. The report noted that imports had decreased.
The price index for gross domestic purchases saw a rise of 2.3 percent during this period, slightly adjusted upward from prior estimates. The personal consumption expenditures (PCE) price index went up by 2.4 percent, also seeing a minor revision upwards.
For the entire year of 2024, real GDP grew by 2.8 percent over the previous year—a figure consistent with earlier estimates. This yearly increase reflected gains across consumer spending, investment, government expenditure, and exports while imports also rose.
"The price index for gross domestic purchases increased 2.4 percent in 2024," according to the report's revisions section.
Further insights into these revisions include adjustments based on new data from various sources such as BEA’s International Transactions Accounts and Census Bureau trade data.
The next update on GDP figures will be released on March 27, 2025.