GDP: US economy grows at 2.3% annualized pace in fourth quarter, matching estimates
Published On Feb 27, 2025, 8:32 AM
The U.S. economy experienced a growth rate of 2.3% annualized in the fourth quarter of 2024, aligning with previous forecasts. This growth was fueled primarily by increased consumer and government spending, although it was offset by a decline in investment. The growth rate for this quarter shows a slowdown compared to the 3.1% growth rate in the third quarter. Concerns are emerging regarding President Trump's tariffs potentially affecting the economy, leading to a decline in consumer confidence. Economic projections indicate a steady growth rate of 2.3% for the ongoing first quarter of 2025, based on current tracker data.
Stock Forecasts
SPY
Neutral
The consistent GDP growth, despite concerns over tariffs and inflation, indicates a stable economic environment. However, declines in consumer confidence and potential future tariffs pose risks to continued growth. Investors should monitor sectors that depend heavily on consumer spending and government contracts as these may experience heightened volatility as the policies evolve.
Related News
U.S. Economy Shows Signs of Strain From Trump’s Tariffs and Spending Cuts
Feb 27, 2025, 5:02 AM
Consumer and business sentiment is wobbling as fiscal support fades and fears rise that tariffs will lead to higher prices.
The stock market might be Trump's strongest check and balance: Morning Brief
Feb 27, 2025, 6:00 AM
President Trump has redefined the presidential powers in his second term, with little pushback from Congress or the judiciary. But as the economic mood sours, markets may present themselves as a tempering influence.
Commerce Secretary Howard Lutnick attempts to calm concerns over Trump's 'gold card' visa pitch
Feb 26, 2025, 7:36 PM
Commerce Secretary Howard Lutnick addresses criticism and confusion surrounding President Donald Trump's "gold card" visa proposal during an exclusive interview on "Special Report."