Economic growth increased at a slower pace than expected during the fourth quarter of 2024, rising 2.3% after climbing 3.1% during the third quarter of 2024, according to CNBC. Economists had been expecting growth of 2.5%.
Strong consumer spending and government spending reportedly contributed to the gross domestic product increase in the fourth quarter.
Consumer spending rose 4.2% during the fourth quarter, accounting for about two-thirds of all activity. Federal government spending climbed 3.2%.
Gross private domestic investment fell by 5.6%, shaving more than a full percentage point off the topline number.
The Federal Reserve cut its key interest rate by a full percentage point during the last four months of 2024, but officials have indicated aggressive reductions are unlikely this year.
