The growth of the American economy and the rise in unemployment subsidy requests economy

The US government confirmed today, Thursday, the slowdown in the economy’s growth in the fourth quarter of 2024, and it appears that the loss of momentum continued early in the current quarter amid low temperatures and fears that customs duties will harm the spending through high prices. Meanwhile, the number of Americans who applied for unemployment benefits increased.

The Economic Analysis Office of the Ministry of Trade said in its second estimate of the gross domestic product for the fourth quarter today, that the gross domestic product increased by an annual rate of 2.3% in the past quarter after the acceleration by 3.1% in the third quarter of July to September.

Economists had expected in a Reuters poll that GDP growth would remain without modification. GDP growth has been modified by an increase of less than 0.1%, which matches the approximation of 2.3% expected last month.

The impact of improvements in government spending and exports is dispelled for reasons, including the incoming amendments to the spending of consumers and investment. However, consumers, which represents more than two -thirds of the economy, grew at a rate of 4.2% in the fourth quarter after approximation, which matches the previous expected pace.

The economy grew 2.8% in 2024 after expanding 2.9% in 2023.

The expansion increases significantly on the average of 1.8%, which is considered by the policy authors in the Federal Reserve (US Central Bank) a non -inflationary growth rate.

However, there are evidences that indicate a greater slowdown in the early quarter of 2025.

Snow storms and unusually low temperatures in many regions of the United States in January affected retail sales and housing market, and also reduced job growth.

High unemployment

In a related context, the number of Americans who made new requests for unemployment has increased more than expected last week.

The US Department of Labor said today, Thursday, that the new requests jumped 22,000 requests to 242 thousand after the amendment in light of the seasonal factors during the week ending February 22.

Economists had expected 221,000 requests during that week.

The billionaire Illon Musk, who is responsible for managing government efficiency, was dismissed, most of them on February 14.

The demobilization operations, which are part of the efforts of US President Donald Trump to reduce spending and reduce the size of the federal government, have affected the contractors contracting with the government.

Economists have warned that the decrease in the flow of money in the arteries of the economy due to the loss of employees of their salaries and the reduction of spending may cause loss of jobs in the private sector.