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Weak business spending restrains US economy; domestic demand robust

WASHINGTON (Reuters) -U.S. economic growth slowed in the fourth quarter as a strike at Boeing contributed to depressing business investment, but robust consumer spending 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 inventories at businesses were run down, underscoring the strong domestic demand. There was a surprise drop in imports, despite imports helping to boost the goods trade deficit to a record high in December, which had prompted economists to sharply downgrade their fourth-quarter growth estimates.

Wall Street rises as gains in Meta, Tesla offset Microsoft slump

Wall Street's main indexes rose on Thursday, driven by post-earnings advances in Meta and Tesla, although Microsoft's weak cloud forecast and downbeat results from Cigna dampened investor enthusiasm. Microsoft dropped 4.7% after forecasting disappointing growth in its cloud computing business. Meta Platforms rose 4.5% after beating estimates for fourth-quarter revenue, but forecast that first-quarter sales might miss estimates.

US Economy Ends 2024 With 2.3% GDP Growth on Consumer Resilience

(Bloomberg) -- 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.Most Read from BloombergManhattan’s Morning Commute Time Drops With New Congestion TollTrump Paves the Way to Deputize Local Police on ImmigrationHousing Aid Uncertain After Trump’s Spending Freeze MemoTrump's Federal Funding Pause Threatens State Financials How the 2025 Catholi