The U.S. Bureau of Economic Analysis (BEA) released its second estimate for fourth quarter GDP growth, confirming the economy expanded at a 2.3% annual rate. The latest reading represents only a marginal upward revision from the initial estimate released last month.
The Q4 performance marks a moderate cooling from the 3.1% growth recorded in the third quarter. Higher government spending and exports contributed to the slight upward adjustment, while consumer spending and investment figures were revised lower.
Key inflation indicators showed modest upward revisions. The PCE price index, a closely watched measure of inflation, increased 2.4% in Q4, up 0.1 percentage point from the first estimate. Core PCE, which excludes volatile food and energy prices, rose 2.7%, reflecting a 0.2 percentage point upward revision.
For the full year 2024, the economy grew 2.8%, unchanged from previous estimates. The expansion was driven by broad-based increases across consumer spending, business investment, government expenditure, and exports.
Annual inflation measures showed the PCE price index increased 2.5% in 2024, while core PCE rose 2.8%, both unchanged from earlier estimates.
Financial markets responded positively to the GDP report, with major stock index futures moving higher in pre-market trading. The benchmark 10-year Treasury yield climbed to 4.286%, while gold prices declined 1% to $266.32.
The latest GDP figures suggest the U.S. economy maintained steady growth in late 2024, even as the pace moderated from earlier in the year.