Economic growth came in pretty strong for the fourth quarter. GDP rose at an annual rate of 2.3%. And consumer spending rose 4.2%.

Economic growth was healthy in 2024, coming in at 2.8% compared to 2.9% in 2023. The continuing expansion is driven by consumers.

Private labels, like Target’s Everspring or Costco’s Kirkland, have long appealed to budget-minded shoppers, but consumers are increasingly turning to them for perishable foods — a sign of trust.

Though many households are faltering on credit card and auto loan payments, wealthier Americans are keeping the spending metrics robust.

As the second Trump administration begins, people have kept up their spending — but not all for the same reasons.

December sales figures showed spending was strong, but more consumers are using credit cards and buy now, pay later programs to finance purchases.

December saw a 0.4% monthly gain and November was revised up. Less well-off consumers kept up with the aid of credit cards or savings accounts.

End-of-year deals, along with replacement of vehicles lost to hurricanes and anticipation of higher prices in 2025, may be prodding buyers.

The company pointed to a “challenging macroeconomic environment.”

The University of Michigan survey was done before Election Day. Optimism about future economic conditions is at best level in nearly four years.