Explore the latest developments concerning US economy slowed.
US economy slowed sharply in the fourth quarter, expanding at a rate of just 1.4%
The US economy grew at a much slower pace in the final months of 2025 as the historic government shutdown weighed on economic activity, ending a year that saw the weakest growth since the pandemic.
Still, it was far from the worst-case scenario economists feared when President Donald Trump unveiled his sweeping tariffs last spring. The economy grew in 2025, despite tariffs, an aggressive clampdown on immigration and one of the weakest stretches of job creation since the Great Recession, largely thanks to wealthy consumers who continued to spend.
Gross domestic product, which measures all the goods and services produced in the economy, registered at an annualized rate of 1.4% from October through December, the Commerce Department said Friday. That’s a marked slowdown from the 4.4% rate in the third quarter, and lower than the 1.9% rate economists projected in a poll by data firm FactSet. GDP is adjusted for seasonal swings and inflation.
GDP (Advance Estimate), 4th Quarter and Year 2025
Real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the fourth quarter of 2025 (October, November, and December), according to the advance estimate released today by the U.S. Bureau of Economic Analysis. In the third quarter, real GDP increased 4.4 percent.
The advance report for the fourth quarter of 2025, originally scheduled for January 29, 2026, was rescheduled due to the October–November 2025 government shutdown.
The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment. These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased. For more information, refer to the "Technical Notes" below.
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US growth falls sharply to 1.4% rate in fourth quarter
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