The U.S. economy experienced a deceleration in growth during the final quarter of 2024, expanding at an annual rate of 2.3% between October and December, down from 3.1% in the previous quarter.
This slowdown occurred despite a rise in consumer spending, which accounts for approximately two-thirds of U.S. economic activity. Analysts suggest that factors such as supply chain disruptions, labor market challenges, and inflationary pressures may have contributed to the moderated growth.
The Federal Reserve has been closely monitoring these developments, considering potential adjustments to monetary policy to address inflation while supporting economic recovery. Policymakers face the challenge of balancing measures to curb rising prices without hindering growth.
Looking ahead, economists are cautiously optimistic about 2025, anticipating that easing supply chain issues and continued consumer spending could bolster growth. However, uncertainties remain, including potential impacts from global economic conditions and domestic policy decisions.
The recent data underscores the complex dynamics of the current economic landscape, highlighting the need for adaptive strategies to sustain recovery and manage emerging challenges.
