Strong Consumer and Government Spending Fuels Growth

The United States' gross domestic product (GDP) saw a notable improvement, with a 2.4% increase in the fourth quarter of 2024 compared to the previous year. This revision, up from the initial 2.3% estimate, was highlighted in the Bureau of Economic Analysis's third estimate released on Thursday. A significant factor behind this adjustment was a decrease in imports.

Investment Declines Amidst Overall Expansion

Despite the overall positive trend, the period was not without its challenges. Investment experienced a decline, contrasting with the growth driven by consumer and government spending. The report also brought to light a substantial 4.5% surge in real gross domestic income (GDI) and a remarkable $204.7 billion jump in corporate profits, rebounding from a previous quarter's fall.

Annual GDP Growth Holds Steady at 2.8%

Looking at the broader picture for 2024, the real GDP growth remained consistent at 2.8%, aligning with earlier estimates. The year witnessed a 3.4% growth in private goods-producing industries and a 2.8% rise in services, underscoring the diverse drivers of the economy's expansion.