U.S. GDP increased by 2.8 percent on an annualized basis in third quarter 2024 (advance estimate), down from 3 percent in second quarter and below market expectations of 3.1 percent, according to the recent CBRE research report titled, “Q3 GDP Slows But Remains Strong.” However, growth remained well above its long-term average.
Strong growth was accompanied by easing inflation, with the personal consumption expenditures (PCE) price index falling to 1.5 percent annualized in third quarter, well below the Fed’s 2 percent target. The Core PCE Price Index, which excludes food and energy, increased by 2.2 percent, down from 2.8 percent in second quarter.
CBRE stated in the report that the firm expects relatively strong economic growth to continue in the first half of 2025 and then ease as the year progresses. The report also stated that CBRE expects that inflation will continue to fall, allowing the Fed to continue cutting interest rates this year and next.
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