US GDP up 2.4% in Q4 2024, driven by consumer & government spending

In Q3 2024, real GDP in the country increased by 3.1 per cent.

The Q4 rise primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased.

Real GDP was revised up by 0.1 percentage point from the second estimate, primarily reflecting a downward revision to imports.

The deceleration in real GDP in Q4 2024 compared to Q3 reflected downturns in investment and exports that were partly offset by an acceleration in consumer spending. Imports turned down.

The Q4 rise also reflected an increase of 2.3 per cent in real value added for private goods-producing industries and an increase of 2.7 per cent for the government.

Real gross output increased by 1.7 per cent in Q4 2024—an increase of 0.3 per cent for private goods-producing industries and an increase of 3.1 per cent for the government, a BEA release said.

The price index for gross domestic purchases increased by 2.2 per cent in Q4 2024, revised down by 0.1 percentage point from the previous estimate.

The personal consumption expenditures (PCE) price index increased by 2.4 per cent, the same as previously estimated. Excluding food and energy prices, the PCE price index increased by 2.6 per cent, revised down 0.1 percentage point from the previous estimate.

Real gross domestic income (GDI) increased by 4.5 per cent in Q4 2024 compared with an increase of 1.4 per cent in Q3.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased by $204.7 billion in Q4 2024 in contrast to a decrease of $15 billion in Q3.

ALCHEMPro News Desk (DS)