A humming American economy ended 2024 on a solid note with consumer spending continuing to drive growth, and ahead of what could be a change in direction under a Trump administration.

The Commerce Department reported Thursday that gross domestic product — the economy’s output of goods and services — expanded at a 2.3% annual rate from October through December.

For the full year, the economy grew a healthy 2.8%, compared with 2.9% in 2023.

The fourth-quarter growth was a tick below the 2.4% economists had expected, according to a survey of forecasters by the data firm FactSet.

Consumer spending grew at a 4.2% pace, fastest since January-March 2023 and up from 3.7% in July-September last year. But business investment tumbled as investment in equipment plunged after two straight strong quarters.

The U.S. economic outlook has become more cloudy, however. Trump has promised to cut taxes and ease regulations on business, which could speed GDP growth. But his plan to impose big taxes on imports and to deport millions of immigrants working in the United States illegally could mean slower growth and higher prices.

Union, Starbucks agree to mediator in contract talks

Starbucks and its union have agreed to bring in an outside mediator for contract negotiations in an effort to revive stalled talks and reach a landmark deal.

The company and Workers United “have made progress over the last nine months of bargaining, and we are committed to continuing to work together — with a mediator’s assistance — to navigate complex issues and reach fair contracts,” Starbucks and the union said in a statement emailed to Bloomberg News.

The union is “optimistic that Starbucks will move off of their fixed position on wage and benefits improvements in this next phase of negotiations,” barista and bargaining delegate Michelle Eisen said in a separate statement from Workers United.

The union and the company have been negotiating a template for first-time collective bargaining agreements covering more than 500 US cafes that have unionized since late 2021. After years of conflict, the two sides announced last February they had agreed to work together to resolve hostilities.

Spirit Air rebuffs new takeover offer from Frontier Airlines

Bankrupt Spirit Airlines Inc. rejected a new acquisition offer from the parent of Frontier Airlines but said it remains open to a long-discussed combination of the budget carriers.

Frontier Group Holdings met with Spirit’s leaders in recent days to discuss a proposal that it values at about $2.2 billion, supported by the issuance of new Frontier debt and stock, according to a statement Wednesday. It’s seeking to convince Spirit bondholders that the plan is preferable to bankruptcy restructuring, which Frontier said would result in “an unprofitable airline with a high debt load.”

Spirit rebuffed the offer, calling the terms “inadequate and unactionable.” The company said in a regulatory filing that it would continue to pursue a restructuring plan through bankruptcy but also “would be happy to consider” a revised bid that addresses deficiencies.

Fewer Americans apply for jobless benefits early this year

The number of Americans filing for jobless benefits fell last week in a sign that the labor market remains strong.

Applications for jobless benefits fell by 16,000 to 207,000 for the week ending Jan. 25, the Labor Department said Thursday. Analysts were expecting 225,000 new applications.

Weekly applications for jobless benefits are considered a proxy for layoffs.

The four-week average, which evens out some of the weekly volatility, ticked down by 1,000 to 212,500.

Compiled from Bloomberg and Associated Press reports.