The U.S. economy experienced solid growth in 2024, with GDP increasing by 2.4% in the fourth quarter – slightly higher than the initial 2.3% estimate. This capped off a year with growth of 1.6% in Q1, 3% in Q2, and 3.1% in Q3. The Q4 uptick was driven by increased government and consumer spending, though investment declined.
Looking ahead, forecasts suggest the economy has slowed in the first quarter of this year. The Federal Reserve will be closely watching the Q1 GDP data, set for release on April 30, as they weigh future monetary policy decisions.
On the employment front, Initial Jobless Claims held fairly steady at a historically low 224,000. However, Continuing Claims remained elevated above 1.8 million, dropping 25,000 to 1.856 million. This suggests longer unemployment periods for jobseekers, a trend that has persisted since last June.