The slowdown in US GDP
In the fourth quarter of 2024, the United States economy showed signs of a slowdown, with gross domestic product (GDP) growth that stood at 2.3% on a quarterly basis.
This figure, published by the Bureau of Economic Analysis, represents a decrease compared to 3.1%% in the previous quarter and is below analysts’ expectations, who had expected an increase of 2.7%.
Domestic consumption on the rise
Despite the general slowdown, domestic consumption accelerated significantly, recording an increase of 4.2% compared to 3.7% in the previous quarter. This increase suggests that American consumers are continuing to spend, helping to support the economy during a time of uncertainty. However, it is important to note that inflation showed an increase, with the PCE price index reaching 2.3%, up from 1.5%% in the previous
quarter.
Inflation and PCE core index
The PCE core index, which excludes food and energy goods, registered an increase of 2.5% in the fourth quarter, in line with analysts’ expectations and up from 2.2%% in the previous quarter. This increase in inflation could influence the Federal Reserve’s monetary policy decisions, as higher inflation could push interest rates to rise
.
Implications for companies
In an environment of economic slowdown, companies are also facing significant challenges. Recently, United Parcel Service (UPS) announced an expected drop in revenues for 2025 and a reduction in volumes with its main customer. Despite a growing profit in the fourth quarter of 2024, the company decided to outsource SurePost products and restructure the US network. This decision reflects the difficulties that many companies are facing in an uncertain economic environment
.