As 2024 concludes, our U.S. economic review exhibits a pattern of gradual growth, with certain sectors facing challenges. The third quarter of 2024 saw a modest GDP increase of 0.8% quarter-over-quarter, translating to a 3.2% year-over-year rise. This growth is primarily attributed to consumer spending and business investments. (Economy)
The (labor market) remains robust, maintaining an unemployment rate below 4% for the longest stretch since the 1960s. (AP News)
However, wage growth has been moderate, contributing to a 1.6% year-over-year increase in personal income as of November 2024. (Economy)
Inflation has decelerated to its lowest point in 2.5 years, with the Consumer Price Index (CPI) rising by 0.3% month-over-month in November 2024, resulting in a 1.4% year-over-year increase. (Economy)
Despite this slowdown, many Americans continue to feel the impact of previous inflationary pressures, which have affected their purchasing power and savings. (ABC News)
The housing market faces significant challenges due to elevated mortgage rates and persistent affordability issues. High prices and borrowing costs have pushed homeownership out of reach for many, leading to a slowdown in home sales and construction. (Investopedia)
In the corporate sector, profits have been strong, with current production profits increasing by $105.7 billion in the third quarter. (The Hill)
However, this profitability has not fully translated into widespread economic optimism, as many Americans remain concerned about economic stability and future prospects.
Looking ahead, the U.S. economy is expected to continue its trajectory of modest growth into the new year. However, challenges such as (housing affordability), wage stagnation, and lingering inflationary concerns may influence economic sentiment and policy decisions in the coming months.
