Q4 GDP Growth Disappoints Sharply

Q4 GDP Growth Disappoints Sharply
The U.S. economy lost significant momentum in the fourth quarter, expanding at just 0.7% annually according to the second estimate released today. This figure represents a dramatic deceleration from the third quarter's robust 4.4% growth rate and falls substantially below economist expectations of 1.4% expansion. The sharp slowdown signals cooling economic activity heading into 2024, raising questions about the sustainability of growth momentum. Weaker consumer spending, reduced business investment, and inventory adjustments contributed to the disappointing performance. The miss suggests the Federal Reserve's interest rate hikes may be exerting greater pressure on economic activity than previously anticipated.