The U.S. economy grew at a 2.9% annual rate in the fourth quarter of 2020, according to the latest report from the Commerce Department. The news was welcomed by economists, as it marked a slight improvement from the third quarter’s 2.5% growth rate.
However, the report also revealed an ominous sign not seen since the Great Depression: a drop in the Federal Reserve’s preferred measure of inflation, the personal consumption expenditures price index. The index fell 0.1% in the fourth quarter, the first decline since 1932.
Experts are divided on the implications of the report. While some see the 2.9% growth as a sign of economic recovery, others point to the underlying weakness in the economy. The Wall Street Journal reported that the economy slowed down in the fourth quarter, with a drop in investment spending and weak jobless claims data.
Meanwhile, Reuters reported that the U.S. economy posted strong growth in the fourth quarter, but with underlying weakness. CNBC Television spoke to experts who expressed concerns about the potential impact of the pandemic on the economy.
Overall, the fourth quarter GDP report is a mixed bag, with signs of economic recovery tempered by underlying weaknesses.
Insightful Analysis: Mairs & Power Growth Fund Reveals Surprising Trends in Q4 2024 Commentary
Chicago, IL – Mairs & Power Growth Fund, a mutual fund based in Saint Paul, Minnesota, reported on its performance for the fourth quarter of 2024. The fund showcased strong growth and positive returns during the last quarter, reflecting its investment strategy and market trends. Throughout the quarter, the Mairs & Power Growth Fund outperformed its benchmark index, demonstrating the fund managers’ ability to select successful investments. The fund’s diversified portfolio, which includes a mix of large-cap and mid-cap stocks, contributed to its overall performance. ... Read more