The U.S. Bureau of Economic Analysis released their first estimate of GDP for the fourth quarter of 2024. According to the first estimate, GDP grew 2.3% at an annualized rate. This increase was driven by strong consumer demand, particularly from demand for durable goods, but held back by lagging investment, particularly for new equipment. Including the fourth quarter, GDP expanded by 2.8% through all of 2024.
“Today’s GDP print for the fourth quarter showed strong growth from consumer demand for durable goods, the type of goods most commonly made utilizing the metalworking machinery AMT members make and sell,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “On the other hand, there was a sharp pullback in business investment in equipment. Despite this, orders for manufacturing technology began to rise through the fourth quarter of 2024. Continued demand from consumers and a rebound in investment could sustain the momentum of manufacturing technology orders well into 2025.”
The next U.S. Manufacturing Technology Orders (USMTO) report from AMT with data on metalworking machinery orders through December 2024 will be published on Monday, Feb. 10.
Real gross domestic product (GDP) increased at an annual rate of 2.3 percent in the fourth quarter of 2024 (October, November, and December), according to the advance estimate released by the U.S. Bureau of Economic Analysis. In the third quarter, real GDP increased 3.1 percent.
The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased. For more information, refer to the “Technical Notes” below.
Compared to the third quarter, the deceleration in real GDP in the fourth quarter primarily reflected downturns in investment and exports. Imports turned down.
The price index for gross domestic purchases increased 2.2 percent in the fourth quarter, compared with an increase of 1.9 percent in the third quarter. The personal consumption expenditures (PCE) price index increased 2.3 percent, compared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index increased 2.5 percent, compared with an increase of 2.2 percent.
| Real GDP and Related Measures | |
|---|---|
| (Percent change from preceding quarter) | |
| Real GDP | 2.3 |
| Current-dollar GDP | 4.5 |
| Gross domestic purchases price index | 2.2 |
| PCE price index | 2.3 |
| PCE price index excluding food and energy | 2.5 |
GDP for 2024
Real GDP increased 2.8 percent in 2024 (from the 2023 annual level to the 2024 annual level), compared with an increase of 2.9 percent in 2023. The increase in real GDP in 2024 reflected increases in consumer spending, investment, government spending, and exports. Imports increased.
The price index for gross domestic purchases increased 2.3 percent in 2024, compared with an increase of 3.3 percent in 2023. The PCE price index increased 2.5 percent, compared with an increase of 3.8 percent. Excluding food and energy prices, the PCE price index increased 2.8 percent, compared with an increase of 4.1 percent.
