Washington, Oct. 30, 2024 – The US economy grew by 2.8% in the third quarter of 2024, lower than the 3% recorded in the second quarter.
The US Bureau of Economic Analysis reported this in its advance (first) estimate of US GDP for the third quarter of 2024 released on Wednesday. Â
According to the report, the slowdown in GDP growth in the third quarter is largely attributable to a decline in private inventory investment and residential fixed investment.
While consumer spending and exports contributed to the growth, they were not enough to offset the weakness in other areas.
The weaker-than-expected GDP growth raises concerns about the trajectory of the US economy.
However, the underlying strength of the consumer and the recovery in the global economy may help to mitigate the impact of the slowdown.
The Federal Reserve will be closely monitoring these economic indicators as it considers its next steps for monetary policy as it approaches its Nov. 7 Federal Open Market Committee (FOMC) meeting.
The central bank may need to reassess its rate cut plans, particularly if the economy shows signs of weakening further.
While the recent rate cut has provided some relief to the economy, it is crucial to strike a balance between stimulating growth and managing inflationary pressures.
The Fed’s ability to navigate this delicate balance will be crucial in determining the future trajectory of the US economy. (GBN)
