The U.S. economy finished the year on solid footing as Gross Domestic Product (GDP) for Q4 2024 grew 2.3%. Looking under GDP’s hood, we view the U.S. economic engine as healthy. The consumer is the most important component to the economy, with consumption representing just under 70% of GDP. In the fourth quarter consumption contributed 2.8%, outpacing overall GDP. A negative component of GDP this quarter was an inventory build, which detracted 0.9% from GDP. We believe inventories increased during the quarter as companies looked to front run any prospective tariffs by purchasing goods before President Trump took office. The inventory piece of GDP is noisy as it tends to fluctuate throughout the year and this quarter’s negative drag likely masks some of the strength in the overall economy.
Interested in the rest? Click here to read more
First County Advisors products and services are not insured by the FDIC, are not
deposits or other obligations of, or guaranteed by First County Bank, and are subject to
investment risks, including possible loss of principal amount invested.
