US EditionUS fourth-quarter GDP revised down to 0.7% growth; January core inflation at 3.1%
GDP growth slowed sharply due to a 43-day government shutdown and weaker consumer spending while core inflation rose 3.1%, the highest in nearly two years, government data showed.
- The Commerce Department's second estimate shows fourth-quarter GDP at a 0.7% annualized rate, down from the initial 1.4% and below 4.4% in the third quarter.
- The 43-day government shutdown last fall and a 16.7% plunge in federal government spending and investment reduced fourth-quarter growth, the Commerce Department reported Friday.
- The Commerce Department on Friday reported that the personal consumption expenditures index rose 0.3% in January and is up 2.8% from a year ago, while core PCE increased 0.4% and 3.1% annually.
- Federal Reserve officials are watching inflation and geopolitical risks as the U.S. labor market weakens and 2025 GDP slows to 2.1%, influencing potential policy decisions.
- Rising energy costs tied to the Iran war have pushed up oil and gas prices, exports fell 3.3% in the fourth quarter, and business investment excluding housing rose 2.2%, with the final GDP report due April 9.
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U.S. economic growth at the end of last year was even weaker than previously reported, hampered by the historic closure of the U.S. government even before the U.S. war with Iran.
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U.S. economy expands slowly at 0.7% in fourth quarter, downgrading from initial government estimate
Growth in gross domestic product — the nation's output of goods and services — was down sharply from 4.4% in last year's third quarter and 3.8% in the second.
Washington. The gross domestic product (GDP) of the United States in the last quarter of last year was significantly revised downwards this Friday, due to a cooling of consumer, government and investment spending, according to official data.The economy grew at an annualized rate of 0.7% in the fourth quarter of 2025, the Department of Commerce reported, well below the initially estimated 1.4%.This review reflects “downward cuts in exports, house…
US economic growth slumps to 0.7% in fourth quarter, stoking inflation worries
The US economy grew at a significantly slower pace than initially estimated for the final months of 2025, government data showed on Friday, a major downgrade that comes as fallout from war in the Middle East looms. US gross domestic product rose at an annual rate of 0.7 per cent in the fourth quarter, the Commerce Department said. This was sharply down from its earlier estimated 1.4 per cent over the October to December period. It also indicates…
Daily Post-Athenian
US economic growth sharply lower than estimated in fourth quarter
The US economy grew at a significantly slower pace than initially estimated for the final months of 2025, government data showed Friday, a major downgrade that comes as fallout from war in the Middle East looms.
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