US economic growth slows despite consumers spending more
Published On Jan 30, 2025, 9:22 AM
The US economy experienced a slowdown in growth at the end of last year, expanding at an annual rate of 2.3% in Q4, down from 3.1% the previous quarter. The slowdown was attributed to declines in trade and investment due to external factors like hurricanes and labor strikes. While consumer spending rose significantly, analysts caution that the increase may have been temporary and influenced by pre-tariff purchase behavior. The outlook remains uncertain as trade policy changes are expected to be proposed by President Trump.
Stock Forecasts
XLY
Negative
Given the slowing economic growth and uncertainties surrounding trade policies and consumer behavior, investment in sectors sensitive to consumer spending and trade may face challenges. Companies relying heavily on exports or those in the automotive sector, which saw a spike in spending partially due to anticipated tariffs, may be negatively impacted.
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