Connect with us


The U.S. economy grew a solid 3.2% in the fourth quarter, a slight decline from the government's initial estimate.

The U.S. economy grew a solid 3.2% in the fourth quarter, a slight decline from the government's initial estimate.


WASHINGTON (AP) The U.S. economy grew at a robust 3.2% annually between October and December, propelled by healthy consumer spending, the Commerce Department reported Wednesday, down slightly from its initial estimate.

The country's gross domestic product expansion and the economy's total output of goods and services fell 4.9 percent between July and September. Fourth-quarter GDP figures were revised down from the 3.3% pace initially reported by Commerce last month. U.S. growth has now topped 2% for the sixth consecutive quarter, defying fears that high interest rates could tip the world's largest economy into a recession.

Far from stumbling, the economy grew 2.5% over all of 2023, outpacing 2022's 1.9% growth.

Consumer spending, which accounts for about 70% of U.S. economic activity, grew at an annual rate of 3% from October to December. State and local spending increased at an annual rate of 5.4% from October to December, the fastest pace since 2019. Growth in exports also contributed to fourth-quarter growth.

Wednesday's report also showed that inflationary pressures continued to ease. The Federal Reserve favored price measurement: the personal consumption expenditures price index increased at an annual rate of 1.8% in the fourth quarter, compared to 2.6% in the third. Excluding volatility in food and energy prices, so-called core inflation rose 2.1%, a slight acceleration from a 2% rise in the third quarter.

The United States is expected to continue generating growth in 2024. The International Monetary Fund projects that the U.S. economy will grow 2.1% this year, more than double its forecast for growth in major advanced economies than are Japan, Germany, the United Kingdom, France and Italy. .

Voters are assessing the health of the economy ahead of the November presidential election. Many Americans are exasperated by high prices and blame President Joe Biden. Even though inflation has eased and hourly wage increases have outpaced price increases over the past year, consumer prices are still 17% higher than they were a year ago. is three years old.

In response to resurgent inflation, the Fed raised its benchmark interest rate 11 times between March 2022 and July 2023, bringing it to its highest level in more than two decades. Rising borrowing costs have curbed the inflationary surge. Last month, consumer prices rose just 3.1% from January 2023, down from a peak of 9.1% in June 2022 and close to the 2% target of the federal government.

To the surprise of the Fed and most economists, progress against inflation has so far been made without causing much economic pain. Unemployment has fallen below 4% for 24 straight months, the longest such streak since the booming 1960s. And employers created an average of 244,000 jobs per month over the past year, including more than 300,000 in December and January.

American households are generally in good financial health, which allows consumers to spend. And businesses have improved their productivity by using automation and finding ways to enable their employees to work more efficiently.

The combination of falling inflation and strong growth in hiring and GDP has raised hopes that the Fed can achieve a rare soft landing that defeats inflation without causing a recession.

We think growth will slow but remain positive in the coming quarters,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. But the economy should get a boost , she said, thanks to the Fed's rate cuts later this year. The central bank has indicated that it plans to cut its key rate three times in 2024.

Wednesday's report was the second of three estimates from the Commerce Department for fourth-quarter GDP growth. The final revision comes out on March 28.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]