
The U.S. economy grew at a slower pace in Q4, with the GDP growth rate advancing by 2.3% quarter-on-quarter (QoQ), falling short of market expectations of 3%. The deceleration highlights a softening in consumer demand and investment amid inflationary pressures and higher borrowing costs.
The GDP price index rose 2.2% QoQ, slightly below the 2.3% estimate, indicating muted inflationary pressures compared to previous quarters. Meanwhile, GDP sales saw a robust 3.2% QoQ advance, surpassing estimates of 2.9%, driven by stronger-than-expected consumer spending and service sector contributions.
For the full year, GDP rose by 2.5%, driven by robust consumer spending supported by low unemployment and consistent wage growth. Despite facing challenges such as high interest rates, persistent inflation, and global political instability, the U.S. economy exceeded initial predictions, showcasing its underlying strength.
These preliminary figures will undergo further revisions, but the current data leaves the economy on a steady path as it enters 2025 under a new presidential administration.