Jan. 30 (UPI) -- U.S. real Gross Domestic Product increased in the fourth quarter of 2024 but fell short of analysts' expectations and gains from the third quarter.
The Bureau of Economic Analysis reported that fourth-quarter GDP rose 2.3%, after rising 3.1% in the third quarter.
"The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased," the BEA said in a statement.
Fourth-quarter real GDP was lower than the expected 2.5% by economists polled by Dow Jones.
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Compared with the third quarter, the BEA said, the decline for the fourth quarter "primarily reflected downturns in investment and exports. Imports turned down."
For 2024, the BEA said real GDP increased 2.8%. For 2023 it was 2.9%.
The price index for gross domestic purchases was up 2.2% in the fourth quarter compared with 1.9% in the third quarter.
PCE inflation, the BEA said, was up 2.3%, compared with a third quarter increase of 1.5%.
Excluding food and energy the PCE was up 2.5% in the fourth quarter.
The BEA said consumer spending was up 4.2%.
"Within services, the leading contributor to the increase was health care," BEA's Thursday statement said. "Within goods, the leading contributors to the increase were recreational goods and vehicles as well as motor vehicles and parts."
According to the BEA, Hurricane Milton in Florida disrupted usual consumer and business activities during the fourth quarter, but it isn't possible to estimate the overall impact of Hurricane Milton on fourth-quarter GDP.
"BEA's preliminary estimates show that Hurricane Milton resulted in losses of $27.0 billion in privately owned fixed assets ($108.0 billion at an annual rate) and $3.0 billion in state and local government-owned fixed assets ($12.0 billion at an annual rate)," the BEA said.
