US Commerce Department GDP report for Q4 2024

US GDP Rises 2.8% in Q3 as Consumer Spending Surges 3.7%

Oct 30, 2024, 12:30 PM

The US economy expanded at an annualized rate of 2.8% in the third quarter of 2024, slightly below expectations of 2.9% or 3.0%, according to data released by the Commerce Department. Robust consumer spending, which rose at a 3.7% pace—the strongest since the first quarter of 2023—and strong business investment, particularly an 11.1% increase in equipment investment, were key drivers of growth. Non-residential investment increased by 3.3%. The Core PCE price index, the Federal Reserve's preferred measure of inflation, came in at 2.2%, slightly above the expected 2.1% but at its lowest level since the fourth quarter of last year. Government spending also contributed positively to GDP growth. Nominal GDP grew at a 4.7% annualized rate. The growth comes ahead of the upcoming presidential election.