The post U.S. GDP Grows 2.3% in Q4, Missing Expectations appeared on BitcoinEthereumNews.com.

The U.S. economy grew at an annualized rate of 2.3% in Q4 2024, according to the Bureau of Economic Analysis (BEA). This fell short of market expectations of 2.7%, signaling slower-than-anticipated economic expansion. This data represents the advance estimate, with preliminary and final reports expected in the coming weeks. Why Did U.S. GDP Growth Miss Forecasts? 📉 Weaker Consumer Spending – Slower holiday retail sales and high-interest rates impacted spending.🏗 Declining Business Investments – Companies scaled back on capital expenditures amid economic uncertainty.🌍 Global Economic Headwinds – Trade disruptions and weaker international demand affected exports. Despite moderate growth, the U.S. economy expanded at a slower pace than economists predicted. Breakdown of Q4 2024 U.S. GDP Report Key Components of GDP Growth: ✅ Consumer Spending: Modest gains, but below previous quarters.✅ Government Spending: Provided a mild boost to overall GDP.✅ Business Investments: Showed slower expansion amid economic caution.✅ Exports & Trade Balance: Affected by global economic trends and trade policies. The full GDP breakdown will be detailed in the preliminary and final estimates. What Does This Mean for Markets & the Fed? 📊 Stock Market Reaction: Slower GDP growth may weigh on equities, but lower inflation risks could support rate cuts.🏦 Federal Reserve Policy: The Fed may adjust its interest rate outlook depending on future economic data.💰 Inflation & Consumer Spending: Moderation in GDP growth could ease inflation concerns, influencing Fed decisions. The next preliminary GDP estimate will offer a clearer picture of economic trends. FAQs What was the U.S. GDP growth rate for Q4 2024?The economy grew 2.3% in Q4 2024, missing the 2.7% market forecast. Why did GDP growth miss expectations?Weaker consumer spending, slower business investment, and global headwinds contributed to the slowdown. Will the GDP estimate change?Yes. The advance estimate is the first of three releases, with preliminary…

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Filed under: News - @ February 1, 2025 11:25 am