US economic output grows at fastest pace in nearly 3 years to end 2024
Published On Dec 16, 2024, 10:58 AM
US economic output has increased at its fastest rate in nearly three years, primarily driven by growth in the services sector. According to S&P Global, the composite PMI rose to 56.6 in December, with a notable services PMI reading of 58.5, while the manufacturing sector has shown some weakness. The overall economic growth suggests a potential annual GDP growth of over 3% in December, with current economic sentiment at its highest in over two years. Analysts expect continued positive economic momentum into 2025, favoring the stock market.
Stock Forecasts
SPY
Positive
The strengthening US economy, highlighted by significant growth in the services sector, suggests that equities will likely benefit from increased consumer spending and investor confidence. Positive GDP projections imply a potentially robust stock market rally into 2025.
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