US Economic Growth Slows to 2.3% As Trade And Investment Weaken

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The U.S. economy slowed at the end of 2024, expanding at an annual rate of 2.3% between October and December, down from 3.1% in the previous quarter, according to the U.S. Commerce Department. The slowdown was driven by a decline in trade and investment, compounded by labor strikes and the impact of two major hurricanes.

Despite robust consumer spending, which rose by 4.2%, overall growth fell short of economists’ expectations of 2.5%. Analysts suggest that a surge in goods purchases, including automobiles, may reflect consumers rushing to buy ahead of potential trade tariffs proposed by President Donald Trump.

Trump’s economic agenda, which includes deep government spending cuts and new trade tariffs, has added to uncertainty about the economy’s trajectory. While U.S. exports and imports both contracted, resulting in a neutral impact on GDP calculations, private investment took a hit—partly due to strikes at aerospace giant Boeing.

Economists caution that these figures are preliminary and could be revised. The effects of extreme weather events and labor disputes further complicate the economic outlook, leaving investors and policymakers closely watching the next set of data.

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