Long: Underlying fundamentals stronger than 2.3% GDP growth

Real gross domestic product (GDP) increased at an annual rate of 2.3% in the fourth quarter of 2024, according to the advance estimate released by the U.S. Bureau of Economic Analysis, compared to a 3.1% increase in the third quarter.

"Real GDP increased by 2.3% during the fourth quarter, but underlying fundamentals were stronger. Private inventories subtracted nearly a full percentage point from growth, but that is a volatile category. Consumption growth was stronger than expected at 4.2%, while business investment fell sharply,” Curt Long, America's Credit Unions deputy chief economist/head of emerging issues. “Overall, the economy is growing at a solid pace, and any potential growth scare could be mitigated by cutting interest rates. Credit unions also act as a stabilizing force for the economy, extending credit when riskier lenders are forced to rein in credit during business cycle downturns.”
 

heelo