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Last Year’s Odd Economy, What to Watch for in ’26

The U.S. economy grew 4.3% in Q3 despite a 4.6% unemployment rate in November and inflation at 2.8%, influenced by tariffs and a six-week government shutdown.

  • Economic data for 2025 showed the United States posted a strong 4.3% annualized gain in the July-September quarter while hiring weakened, with the unemployment rate at 4.6% in November.
  • President Donald Trump’s tariff moves in early April distorted hiring and prompted front-loaded imports, while a six-week government shutdown last fall reduced output by one percentage point.
  • Excluding government, businesses added an average of 75,000 jobs monthly in the three months ended in November, with hiring concentrated in the health care sector, restaurants and hotels, and government jobs despite many private industries shedding workers.
  • Elevated consumer costs became a potent political issue as inflation ticked to 2.8% in September, with December figures to be released Jan. 9, leaving analysts uncertain.
  • Most economists expect inflation to cool toward 2% in 2026, and hiring may strengthen as tariff uncertainty eases and President Donald Trump’s tax cut refunds boost growth this year.
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Last year's odd economy in five charts, and what to watch for in 2026

The economy in 2025 was filled with contradictions, as growth was healthy while hiring slowed, inflation stayed elevated and unemployment rose.

·United States
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In the third quarter, the United States recorded growth of 4.3%, above expectations and supported by consumption. But at the same time, the unemployment rate increased, in the face of fear of job destruction because of the IACerta some of these figures were expected in the month of October, but shutdown obliges, their publication was delayed. A few days before Christmas, the Bureau of Economic Analysis (BEA, attached to the Department of Commerc…

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Le Temps broke the news in on Saturday, January 3, 2026.
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