Economic growth in the US slowed at the end of last year, as trade and investment declined and the country was hit by hurricanes and labour strikes.
The economy expanded at an annual rate of 2.3% between October and December, down from 3.1% in the three months before, according to the US Commerce Department.
The pace, fuelled by solid growth in consumer spending, was nevertheless weaker than economists had forecast.
The figures come amid heightened uncertainty about the path for the world’s largest economy, as US President Donald Trump calls for a policy shake-up.
His plans include big cuts to government spending and implementing trade tariffs, which could be announced this week.
The US economy had been forecast to expand at roughly 2.5% in the final three months of 2024 though analysts said details of the Commerce Department report suggested growth remained solid.
“The US consumer has been unstoppable, supported by wealth creation, a strong labour market, and lending,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, adding that overall growth last year was “surprisingly strong”.
Consumer spending – the biggest driver of the US economy – rose 4.2%.
But analyst Samuel Tombs of Pantheon Macroeconomics noted that consumer spending was lifted primarily by a jump in purchases of goods, including cars.
He said that could indicate a temporary burst of buying from people worried about the impact of potential tariffs on prices.
“We would caution against concluding that underlying domestic demand remains unassailably strong,” he added.
The report showed a decline in both exports and imports of goods – contractions in activity that nonetheless had a roughly neutral impact on the overall growth figure.
Economists subtract imports from growth calculations because they are not made domestically.
Private investment, which analysts said was likely hit by the strike at aerospace giant Boeing, also fell.
Analysts had also warned the figures, which are preliminary and get revised, could be affected by disruptions from two big hurricanes that hit the US in the autumn.