US EditionFourth Quarter GDP Growth Revised Down to 0.7%
The Commerce Department cited higher consumer spending and investment but lower government spending and exports for the revised 0.7% GDP growth in Q4 2025.
- Friday's BEA second estimate showed U.S. real GDP grew 0.7% in Q4 2025, delayed from Feb. 26 due to last fall's government shutdown.
- BEA officials said the revision reflected downward adjustments to exports, consumer spending—driven by weaker health-care services per Census Bureau data—government spending, investment, and smaller import declines.
- On inflation, the BEA reported the fourth-quarter price index for gross domestic purchases rose 3.8%, the personal consumption expenditures price index increased 2.9%, and Core PCE rose 2.7%, unchanged, while David Russell called the downward GDP revision a 'gut check' on CNBC.
- Markets had expected growth near 1.4–1.5%, but the Q4 2025 GDP revision missed forecasts, coming in well below the Dow Jones forecast of 1.5%.
- The BEA noted the data predate the Supreme Court decision voiding part of President Donald Trump's tariffs and the early March U.S.-Israel war against Iran; tariffs and weak job growth also slowed spending.
12 Articles
12 Articles
'Yikes': Economists sound alarm after GDP revision reveals 'picture not looking good'
Economic numbers are in for the fourth quarter of 2025, and as one economist put it, “Yikes.” In a new report from the Commerce Department, it was revealed that economic growth was significantly slower than anticipated, while inflation climbed. Gross domestic product — the sum total of all goods and services produced, which is considered a key measurement for the health of the economy — rose by just 0.7 percent in the final three months of the y…
US Growth Nearly Stalls as 4th Quarter GDP Revised to 0.7 Percent
The U.S. gross domestic product (GDP) growth rate has been revised lower, indicating that the record-breaking government shutdown weighed more heavily on the economy than initially reported. During the October–December period, the economy expanded 0.7 percent, down from the first estimate of 1.4 percent, according to new Bureau of Economic Analysis data released on March 13. This is also substantially down from the 4.4 percent growth registered …
The result came under the height of 1.5% estimated by a group of market analysts
Fox Business
The New York LedgerUS economic growth revised lower in fourth quarter
The U.S. economy grew at a slower rate than previously thought in the fourth quarter after the Commerce Department released its first revision of real gross domestic product (GDP) growth for the latest quarter.The Bureau of Economic Analysis (BEA) released its second estimate of fourth-quarter GDP, which showed the economy grew at a 0.7% rate. That was slower than the 1.4% estimate of economists polled by LSEG, and below the Commerce Department'…
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