U.S. economic growth slowed a bit more than expected in the final three months of 2024, the Commerce Department reported Thursday.

Consumer spending fueled growth, despite ongoing fears about inflation.

U.S. economic growth slowed in the fourth quarter as a strike at Boeing depressed business investment in equipment, but consumer spending increased at its fastest pace in nearly two years, underscoring strong domestic demand that probably keeps the Federal Reserve on a slow interest rate cut path this year.

Economists expect that real GDP grew about 2.3% in the period, below the third quarter’s growth rate, due to a trade deficit in goods.

Economic growth came in pretty strong for the fourth quarter. GDP rose at an annual rate of 2.3%. And consumer spending rose 4.2%.

U.S. gross domestic product grew by 2,3% in Q4 2024 after expanding by 3.1% in Q3. Consumption was the lion's share of growth as investment fell on inventory declines.