Q4 U.S. GDP Review: Strong Demand Growth Drawing In Imports

Founder & Head of Research, Fortress Hill Advisors

Alex Ng

Founder & Head of Research

Fortress Hill Advisors

Founded in Hong Kong in 2019, Fortress Hill Advisor seeks to provide premium economic and financial researches.

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Macroeconomics

<ul>
<li>The 2.3% increase in Q4 GDP is little weaker than consensus expectations surveyed. But the data was supported by a significantly stronger than expected 4.2% rise in consumer spending</li>
<li>Consumption keeps the pace of growth solid. Core PCE prices at 2.5% are on consensus, showing inflationary pressures moderately above target.</li>
<li>Final sales rose by 3.2%, meaning a negative of 0.9% from inventories, and weak inventory growth in Q4 provides potential for a bounce in Q1 2025.</li>
</ul>


The 2.3% increase in Q4 GDP is little weaker than consensus expectations surveyed. But the data was supported by a significantly stronger than expected 4.2% rise in consumer spending
Consumption keeps the pace of growth solid. Core PCE prices at 2.5% are on consensus, showing inflationary pressures moderately above target.
Final sales rose by 3.2%, meaning a negative of 0.9% from inventories, and weak inventory growth in Q4 provides potential for a bounce in Q1 2025.


Strong Consumer Spending Lead to Modest U.S. Q4 GDP