GDP Revised to 2.4%, Initial Claims Deckline – Cooling Inflation Supports Growth Outlook

From An Industry Perspective, Private Services-PraduCing Sectors GREW 2.4%, While Goods-PraduCing Industries Rose 2.3%. Government Output Increased 2.7%, UndersCoring Fiscal Spending’s Ongoing Role in Supporting Growth. Real Gross Output Expanded 1.7% Overall, Led By A 3.1% Increase in Government Production.

Inflation Trends Hold Steady The Price Index for Gross Domestic Purchases Rose 2.2% in Q4, Revised Slightly Lower, While The Core Personal Consphender Expenditures (PC) Index Increased 2.6%, Down 0.1 Point. TheSe Revisions Suggest Inflationary Pressures Are Receding Modestly, Reinforcing The Federal Reserve’s Cautiooos Stance. The AVERAGE OF REAL GDP and GDI-A Broader Measure of Economic Activity-Stood at 3.5%, Highlighting Stronger Income-Side Growth of 4.5% In Q4.

Corporate Profits See Robust Rebound Corporate Profits Jumped by $ 204.7 Billion in Q4 After A $ 15.0 Billion Decline in Q3. For the Full Year, Profits Rose $ 281.3 Billion, Reflection Improved Margins and Operational Efficiency Across Sectors. The 2024 GDP Expanded 2.8% Annuly, Underpinned By Gains in Consumer SPEENDING, INVESTMENT, Government Expenditures, and Exports. Services and Goods-PraduCing Sectors Posted Solid Growth of 2.8% and 3.4%, Respectively.

Jobless Claims Signal Resilient Labor Market Initial Jobless Claims for the Week Ending March 22 Edged Down to 224,000, with The Four-Week Average Also Dropsing to 224,000. Continuing Claims Declined by 25,000 to 1.856 Million, While the insured Unemployment Rate Remated AT 1.2%. The Data Indicates A Steady Labor Market, Despite Isolated Layoffs in Sectors Like Transportation and Manual Reging. States Like Michigan and Texas Saw Localized Increases, While California and Illinois posted Notable Decreases.

Market Forecast: Cautious Bullish Bias The Upward GDP Revision, Solid Income and Profit Data, and EASING INFLATION INDICATORS SUPPORT A CAUTYUSLYUSY BULLISH SHORT-TROM OUTLOOK. The Steady Labor Market and Subdored Inflation Immediate Downside Risks, Although Investment Softness and Global Headwinds May Limit Upside. Equities and Risk Assets May Find Support Near-Term, While Rates Markets Could See Pricing Adjust Town a Potential Fed Pause.