Unexpected Growth in the US Economy

In a surprising turn of events, the United States gross domestic product (GDP) saw a 2.3% increase in the fourth quarter of 2024 compared to the previous year, as reported by the Bureau of Economic Analysis on Thursday. This growth, however, did not meet the expectations set by analysts.

Inflation and Consumer Spending

The personal consumption expenditures (PCE) price index, a key indicator of inflation, rose by 2.3% annually in the fourth quarter. Excluding the volatile food and energy sectors, the core PCE inflation was slightly higher at 2.5%.

Annual Economic Overview

Looking at the full year, the US economy grew by 2.8% in 2024 compared to 2023. The PCE price index increased by 2.5%, and the core PCE price index, which excludes food and energy, saw a 2.8% rise from the previous year.