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US economic output grows at fastest pace in nearly 3 years to end 2024


Published on 2024-12-16 13:00:47 - AOL
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  • S&P Global's flash US composite, which captures activity in both the services and manufacturing sectors, hit its highest level in 33 months during the month of December.

The U.S. economy experienced its fastest growth rate in nearly two years during the third quarter, with the gross domestic product (GDP) expanding at an annual rate of 4.9%. This surge was primarily driven by a significant increase in consumer spending, which rose by 4%, marking the highest level since 2021. Other contributing factors included a 6.2% increase in exports, a 6.6% rise in federal government spending, and a notable 8.4% increase in business investments, particularly in equipment. Despite these positive indicators, the report also highlighted potential future challenges, such as the resumption of student loan repayments and the possibility of a government shutdown, which could impact economic momentum. Additionally, while inflation has moderated, it remains a concern, with the Federal Reserve likely to maintain high interest rates to manage it.

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