US Real GDP Increases at an Annual Rate of 2.3% in Q4, BEA Reports in Its “Advance” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “advance” estimate for Q4 real gross domestic product (GDP). Real GDP increased at an annual rate of 2.3% in Q4, following an increase of 3.1% in Q3.

The increase in real GDP in Q4 primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment and exports. Imports, which are a subtraction in the calculation of GDP, decreased.

The “advance” estimate is based on source data that are incomplete or subject to further revision. The “second” estimate for Q4 will be released on February 27.

GDP for 2024

Real GDP increased 2.8% in 2024 (from the 2023 annual level to the 2024 annual level), compared with an increase of 2.9% in 2023. The increase reflected increases in consumer spending, investment, government spending, and exports. Imports increased.

The price index for gross domestic purchases increased 2.3% in 2024, compared with an increase of 3.3% in 2023. The PCE price index increased 2.5%, compared with an increase of 3.8%. Excluding food and energy prices, the PCE price index increased 2.8%, compared with an increase of 4.1%.