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US fourth-quarter GDP growth revised lower to a 0.5% rate
Consumer spending and business investment were revised lower, while federal spending fell at a 16.6% annual pace after the shutdown, the Commerce Department said.
- The Commerce Department reported Thursday that U.S. GDP grew at a sluggish 0.5% annual pace in the fourth quarter, marking a downgrade from its previous 0.7% estimate.
- Last fall's 43-day government shutdown slowed economic activity; Federal government spending and investment fell at a 16.6% annual pace, lopping 1.16 percentage points off fourth-quarter GDP growth.
- Consumer spending expanded at a 1.9% pace in the fourth quarter, down from 3.5% in the second quarter and representing a decline from the previous estimate.
- Output decelerated sharply after the third quarter's impressive 4.4% growth, reflecting a broader economic slowdown from 2.1% annual growth last year compared to 2.8% in 2024.
- The economic outlook for this year remains hazy after the U.S.-Israeli war with Iran drove up energy prices and disrupted global commerce; the first look at January-March growth is due April 30.
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Richmond Times-DispatchReposted by 
News & Record
News & RecordGovernment shutdown squeezes US economy
WASHINGTON — The American economy, slowed by last fall's 43-day government shutdown, grew at a sluggish 0.5% annual pace from October through December, the Commerce Department reported Thursday in a downgrade of its previous estimate.
·Richmond, United States
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Washington and Madrid. The gross domestic product (GDP) of the United States grew only 0.5% at annualized rate in the last quarter of 2025, according to official data updated on Thursday.The previous estimate was an increase of 0.7% for that period, a considerable revision compared to the first projection, of 1.4%.This downward revision is mainly due to a reassessment of the level of investment, as explained by the Office of Economic Analysis, o…
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Total News Sources57
Leaning Left9Leaning Right10Center15Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 27%
C 44%
R 29%
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