His plans include big cuts to government spending and implementing trade tariffs, which could be announced this week.
The US economy had been forecast to expand at roughly 2.5% in the final three months of 2024 though analysts said details of the Commerce Department report suggested growth remained solid.
“The US consumer has been unstoppable, supported by wealth creation, a strong labor market, and lending,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, adding that overall growth last year was “surprisingly strong”.
Consumer spending – the biggest driver of the US economy – rose 4.2%. This helped offset a drop in goods exports as well as a fall in private investment.
Imports also declined.
Analyst Samuel Tombs of Pantheon Macroeconomics noted that consumer spending was lifted primarily by a jump in purchases of goods, including cars.
He said that could indicate a temporary burst of buying from people worried about the impact of potential tariffs on prices.
“We would caution against concluding that underlying domestic demand remains unassailably strong,” he added.
