The U.S. Bureau of Economic Analysis reported a 2.4% annual increase in the real gross domestic product (GDP) for the fourth quarter of 2024, following a 3.1% increase in the previous quarter. The primary contributors to this growth were consumer and government spending; however, these were partially offset by a decline in investment. Imports, which reduce GDP, decreased during this period.
The GDP growth figure was revised slightly upward by 0.1 percentage point from the second estimate, mainly due to a downward revision in imports. Compared to the third quarter, the slower GDP growth in the fourth quarter was mainly due to decreased investment and exports, partially counterbalanced by an uptick in consumer spending and a decline in imports.
Industry-specific data indicate a 2.3% increase in real value added for private goods-producing industries, a 2.4% increase for private services-producing industries, and a 2.7% increase for government. Overall, real gross output rose 1.7% in the quarter, with private goods-producing industries up 0.3%, private services-producing industries up 2.0%, and government up 3.1%.
The price index for gross domestic purchases rose 2.2% in the fourth quarter, revised down 0.1 percentage point from the earlier estimate. The personal consumption expenditures (PCE) price index increased 2.4%, consistent with previous estimates, while the core PCE price index, excluding food and energy, rose 2.6%, also revised down by 0.1 percentage point.
Real gross domestic income (GDI) saw a significant 4.5% increase in the fourth quarter, compared to a 1.4% rise in the third quarter. Corporate profits, including inventory valuation and capital consumption adjustments, increased by $204.7 billion, contrasting with a $15.0 billion decrease in the third quarter.
Annual GDP growth for 2024 matched earlier estimates, increasing by 2.8%. This reflected rising consumer spending, investment, government spending, and exports, despite an increase in imports. Private goods-producing industries grew by 3.4%, private services-producing industries by 2.8%, and government by 1.9%.
The price index for gross domestic purchases climbed 2.4% in 2024, maintaining previous estimates, with the PCE price index up 2.5% and the core PCE price index up 2.8%. Real GDI rose 3.0% for the year, up from a 1.7% increase in 2023. Corporate profits rose by $281.3 billion in 2024, compared with a $229.8 billion rise in the previous year. The next GDP report release is scheduled for April 30, 2025.