The US GDP (gross domestic product) slowed and rose 2.8% in the third quarter of 2024. The second estimate was made public by the Bureau of Economic Analysis (BEA) this Wednesday, November 27, 2024.
The annualized result is identical to the one published in the October 30 first estimate. It is also 0.2% points lower than in the second quarter, when GDP grew 3%. The final index for the period will be published on December 19.
According to the publication, the drop compared to the previous quarter was driven by the reduction in investment in private stock and residential fixed investment.
“These movements were partially offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated,” the Bureau of Economic Analysis said.
US Inflation and Interest
Annual inflation in America rose to 2.6% in October. That was up 0.2 percentage points from September, when it was 2.4% over the past 12 months. Monthly inflation was 0.2%, the same as it had been since July. November data will be released on Dec. 11.
On November 7, 2024, the Fed (the Federal Reserve, the central bank of the United States) decided to reduce the basic interest rate range from 4.75% to 5.00% to 4.50% to 4.75% per year. The cut was 0.25 percentage points. This was the second reduction in the US rate since March 2020, when the COVID pandemic began. The first cut was made in September.
A new meeting of the Federal Open Market Committee (FOMC), which determines the Fed’s monetary policy in the US, is scheduled for December 17 and 18.
Also Read: US GDP grows 2.8% in the 2nd quarter of 2024
