The US economy grew at a slower pace than expected in the final quarter of 2023, with trade and investment declining due to hurricanes, labour strikes, and potential policy changes.
The Commerce Department reported an annual growth rate of 2.3% from October to December, down from 3.1% in the preceding three months. Despite solid consumer spending, which rose 4.2%, the pace was weaker than forecasted economists.
US President Donald Trump’s plans include cutting government spending and implementing trade tariffs, sparking uncertainty about the economy’s path forward. Analysts had predicted a growth rate of 2.5% for the final quarter, but the report suggests that underlying domestic demand remains strong.
Consumer spending is the main driver of the US economy, with purchases of goods including cars contributing to the increase. However, analysts warn that this could be a temporary boost due to concerns about potential tariffs on prices.
The report also showed declines in exports and imports of goods, which had a neutral impact on overall growth. Private investment fell, potentially affected by a strike at Boeing. The preliminary figures may be revised, but for now, they indicate a slowdown in the US economy despite strong consumer spending.
Source: https://www.bbc.com/news/articles/cgrn1jex49yo