USA

U.S. economic growth slowed in the fourth quarter as a strike at Boeing (BA.N), opens new tab 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.The moderation in growth last quarter reported by the Commerce Department on Thursday was also because businesses struggled to keep up with the surge in demand, partly driven by households preemptively buying goods ahead of tariffs on imports that have been promised by President Donald Trump.Inventories at businesses were almost depleted. There was a surprise decline in imports, despite imports helping to boost the goods trade deficit to a record high in December, ...

Stocks rose on signals the main engine of the world’s largest economy remains solid, which bodes well for the strength of Corporate America. About 410 shares in the S&P 500 advanced after upbeat outlooks from industry heavyweights like Tesla Inc., Meta Platforms Inc. and International Business Machines Corp. Traders are now eagerly awaiting Apple Inc.’s results due after the closing bell. While the majority of companies have so far exceeded Wall Street’s expectations, disappointing forecasts have been met with selloffs, with Microsoft Corp. and United Parcel Service Inc. being the latest examples. The US economy expanded at a strong pace at the end of 2024, more than offsetting drags from a strike at Boeing Co. and much leaner inventory investment. Consumer spending, which compr...

Consumer spending kept the U.S. economy humming in the final months of 2024. The nation's gross domestic product grew at an annual rate of 2.3% in October, November and December, according to a report from the Commerce Department Thursday. That's down slightly from the previous quarter when GDP grew at a 3.1% annual pace. Consumers ramped up their spending in the final months of the year, opening their wallets for both goods and services. Spending on big-ticket items jumped at an annual rate of more than 12%, which may have been driven partly by a desire to buy before any of the new tariffs threatened by President Trump kick in. "The consumer is driving the economic train," says Mark Zandi, chief economist at Moody's Analytics. "The economy is creating a boatload of jobs and unem...

The US economy expanded at a solid pace at the end of 2024, fueled by a generous tailwind from consumer spending that more than offset drags from a strike at Boeing Co. and much leaner inventory investment. Inflation-adjusted gross domestic product increased an annualized 2.3% in the fourth quarter after rising 3.1% in the prior three-month period, according to the government’s initial estimate published Thursday. The median forecast in a Bloomberg survey of economists called for a 2.6% growth. Consumer spending, which comprises the largest share of economic activity, advanced at a 4.2% pace — the first time since late 2021 that outlays have exceeded 3% in consecutive quarters. The acceleration was led by a pickup in motor vehicle sales. At the same time, a closely watched measur...

Donald Trump has threatened the EU with tariffs unless the bloc steps up LNG imports Donald Trump has threatened the EU with a trade war unless it buys more US oil and gas. But despite Brussels signalling openness to the idea, it has no power to buy — and European countries are importing record volumes of cheaper liquefied natural gas from Russia. The question of whether Europe can act as a bloc and buy more American fuel looms large over the transatlantic relationship after the US president-elect is inaugurated on Monday. “Large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!” Trump posted on social media last month. Soon after his re-election European Commission president Ursula von der Leyen backed the idea: “Why not replace [Russian gas] by Ameri...