US economic growth slowed in the fourth quarter as falling private investment and exports offset gains in consumer spending. Growth in gross domestic product (GDP) slowed to a 2.3% annual pace in the fourth quarter, down from 3.1% in the third quarter, according to the Bureau of Economic Analysis.

Consumer spending rose to a 4.2% annual pace in the fourth quarter, up from 3.7% in the prior quarter, with spending on goods up 6.6% and spending on services up 3.1%.

Private investment fell by 5.6% following a 0.8% gain in the third quarter. Residential investment rose at a 5.3% annual pace after a 4.3% drop in the prior quarter, while spending on equipment fell by 7.8% after gaining 11% in the prior quarter.

Government spending and investment slowed to a 2.5% annual gain from 5.1% in the prior quarter, with defense spending rising by 3.3% after climbing at a 13% pace in the third quarter.

Net exports fell by 0.8% from a year earlier after a 9.6% gain in the prior quarter, and net imports fell by 0.8%.

US economic growth for the full year 2024 slowed to 2.8% from 2.9% in 2023. GDP in 2022 rose by 2.5%.