The American economy appears to be humming along.
According to statistics released by the Commerce Department Thursday, the economy expanded at a 2.3% annual rate from October through December.
For all of 2024, the economy grew at a 2.8% clip, compared with 2.9% in 2023.
The fourth-quarter growth was a tick below the 2.4% economists had expected, according to a survey of forecasters by the data firm FactSet, the Associated Press reported.
Consumer spending grew at a 4.2% pace. That’s the fastest since January-March 2023 and up from 3.7% in July-September last year. But business investment tumbled as investment in equipment plunged after two straight strong quarters, according to the AP report.
Wednesday’s report also showed persistent inflationary pressure at the end of the 2024. The Federal Reserve’s favored inflation gauge — called the personal consumption expenditures index, or PCE — rose at a 2.3% annual pace last quarter, up from 1.5% in the third quarter and above the Fed’s 2% target, according to the AP.
Paul Ashworth, chief North America economist at Capital Economics, told the AP the “..,.economy remains strong, particularly given the fourth-quarter disruptions,” including a strike at Boeing and the aftermath of two hurricanes.
