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. real Gross Domestic Product increased 2.3% at an annual rate in the fourth quarter of 2024, according to a Thursday report from the Bureau of Economic Analysis. Third quarter GDP was 3.1%.

Economists expect that real GDP grew about 2.5% in the period, below the third quarter’s growth rate, due to a trade deficit in goods.

Fourth quarter economic growth eased to an annualized rate of 2.3 percent, shy of an expected 2.6 percent, as the economy heads into uncertain territory. Gross domestic product (GDP) growth slowed from an impressive 3.