Annual growth reaches 2.8% in 2024 despite year-end deceleration.

The US economy expanded by 2.3% in the fourth quarter of 2024, falling short of market expectations of 2.7%, according to the Commerce Department’s first advance reading released Thursday.

Consumer spending and government expenditures drove the quarter’s gains, although they were partially offset by a decline in business investment. Imports, which subtract from GDP calculations, declined during the period, providing a modest boost.

The latest figure marked a notable slowdown from the robust 3.1% growth recorded in the third quarter.

For the full year, the economy grew by 2.8%, a slight cooling from the 2.9% expansion in 2023 but still reflective of steady momentum. Annual growth was supported by a broad-based uptick in consumer spending, government outlays, investment, and exports.

The price index for gross domestic purchases rose 2.2% in October-December, compared with a hike of 1.9% in the previous three-month period.