US Economy Slows Down at the End of 2024, Even as People Keep Spending – BBC
The US economy grew more slowly at the end of 2024, even though Americans continued to spend a lot, according to BBC.
The slowdown happened because businesses invested less money, exports and imports fell, and natural disasters like hurricanes caused disruptions, BBC reported.
According to BBC, the US economy grew by 2.3% from October to December, compared to 3.1% in the previous three months. This was lower than what experts had predicted, even though consumer spending remained strong.
BBC noted that people spent more on goods, such as cars, but some analysts think this may have been a short-term boost due to fears of higher prices from possible new trade tariffs.
BBC also highlighted that business investment dropped, partly because of a major strike at Boeing. Meanwhile, trade activity slowed down, but since imports and exports both declined, the overall impact on growth was balanced. BBC explained that hurricanes in the autumn might have also played a role in the weaker growth numbers.
The economic slowdown comes as President Donald Trump pushes for major policy changes, including cutting government spending and introducing new trade tariffs, which BBC says could be announced soon.
Experts believe that while the US economy has been strong, uncertainty about future policies could impact growth in 2025.
Credit : BBC
https://www.bbc.com/news/articles/cgrn1jex49yo