Gross Domestic Product – Q4 2024 was inline with expectations at 2.3%. But may not tell the whole story. Q1 and Q2 should give us insights on Tariffs and the Federal workers being fired or laid off.

Factors affecting GDP 

• Consumer spending Increased consumer spending contributed to the increase in GDP in the fourth quarter.
• Government spending Increased government spending contributed to the increase in GDP in the fourth quarter. But will change.
• InvestmentA decrease in investment partly offset the increase in GDP in the fourth quarter.
• Imports Imports decreased, which is a subtraction in the calculation of GDP.

Business investment

Business investment has been relatively strong since the start of 2024. Markets expect the incoming administration to further boost the attractiveness of business investment.