U.S. economic growth modestly decelerated in the third quarter of 2024, falling short of economists’ expectations but posting an overall solid period in the face of moderating inflation and high borrowing costs.
The U.S. Bureau of Economic Analysis shared an advance report on Oct. 30,showing that the nation’s real gross domestic product grew at an annualized rate of 2.8% in 2024’s third quarter. That is down from 2Q24’s 3.0%, and below the forecasted 3.1% growth for 3Q based on the economists surveyed by the Associated Press.
The 3Q GDP estimate will be revised in a second report issued Nov. 27.
The BEA said the 3Q real GDP deceleration primarily reflected a downturn in private inventory investment and a larger decrease in residential fixed investment.
Despite a deceleration from 2Q24, the BEA reported increases in consumer spending, exports and federal government spending. Imports — which are subtracted from GDP — also increased.
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