Strong Consumer and Government Spending Fuels Growth

The United States' gross domestic product (GDP) experienced a notable improvement, reaching a 2.4% increase in the fourth quarter of 2024 compared to the previous year. This latest figure, released by the Bureau of Economic Analysis on Thursday, represents a slight upward revision from the earlier estimate of 2.3%, primarily attributed to a downward adjustment in imports.

Investment Declines Amidst Overall Expansion

Despite the overall positive trajectory, the period saw a decline in investment. However, this was more than offset by robust consumer and government spending, which were the main drivers behind the economic expansion.

Significant Increases in GDI and Corporate Profits

The report also highlighted a substantial surge in real gross domestic income (GDI) by 4.5%, alongside a remarkable $204.7 billion jump in corporate profits, marking a recovery from the previous quarter's downturn.

Annual GDP Growth Holds Steady at 2.8%

For the entirety of 2024, real GDP growth remained consistent at 2.8%, mirroring prior estimates. The year witnessed a 3.4% growth in private goods-producing industries and a 2.8% increase in services, showcasing the diverse strengths of the US economy.