Intel stock extends gains after report of possible U.S. government stake
Investing.com - U.S. economic growth slowed in the fourth quarter, according to a final revision of government data on Thursday that followed two earlier estimates.
Gross domestic product increased at an annualized rate of 2.4% during the period, compared to a rise of 3.1% in the July-September quarter, figures from the Commerce Department’s Bureau of Economic Analysis showed.
Economists had predicted that the number would remain unrevised at a prior estimate of 2.3%.
The slight upward revision reflected a decrease in imports, which substract from the GDP calculation, the Bureau of Economic Analysis said, adding that increases in consumer and government spending were also partially offset by a drop in investment.
The report comes as concerns have grown that President Donald Trump’s tariff plans and a bout of inclement weather will hit activity in the world’s largest economy in the first quarter of 2025.
A murky outlook around Trump’s proposals for sweeping tariffs on both friends and adversaries alike is seen denting the ability of businesses to plan for the future, analysts at Barclays (LON:BARC) said, adding that consumers are also likely to ratchet down spending to shield their finances from potential levy-induced headwinds.
Since returning to the White House in January, Trump has raised tariffs on China to up to 30% and placed a 25% duty on steel and aluminum. He has also threatened to roll out tariffs on a range of sectors and institute measures to match foreign tariffs on U.S. goods.
On Wednesday afternoon, Trump said he would place 25% tariffs on automotive imports into the U.S., making good on a pledge to penalize foreign manufacturers of cars and trucks. The action, along with what the White House has dubbed "reciprocal" tariffs, are set to take effect on April 3.
Trump has argued that the tariffs are necessary to offset lost revenues from proposed tax breaks and help bring industrial jobs back to the U.S.
Separately, snowstorms and unseasonably cold temperatures pummeled many sections of the U.S. in January, dragging down retail sales, hitting the housing market, and threatening job demand.
An update to the Atlanta Federal Reserve’s closely-monitored "GDPNow" Model on Wednesday suggested that the economy contracted by 1.8% in the first quarter, although this projection was a slight improvement over earlier readings which had rattled investor sentiment.