US EditionU.S. Economic Growth Was Even Slower Than First Estimated At The End Of 2025
The revision reflects weaker exports, consumer and government spending, and investment amid inflation pressures from Middle East conflicts, with 0.7% GDP growth in Q4 2025.
- On March 13 the U.S. Commerce Department revised quarterly GDP to 0.7%, down from an initial 1.4%, as the second of three estimates.
- Following recalculations, the Commerce Department found downward revisions to exports, consumer spending, federal government spending and investment drove the Q4 GDP cut, with federal spending plunging 16.7% after a 43-day government shutdown late 2025.
- A measure of the economy's underlying strength grew 1.9%, weaker than previous estimates, as business investment excluding housing increased 2.2% in Q4.
- The Federal Reserve faces a policy dilemma as its preferred inflation gauge came in slightly lower in January, but higher interest rates limit easing amid its dual mandate of stable prices and low unemployment.
- With the final Q4 report due April 9, employers cut 92,000 jobs last month as energy markets roiled after U.S.-Israeli strikes on February 28, and investors warned the economy 'stumbled into the finish line', Jim Baird said.
20 Articles
20 Articles
Economics in difficulty before the war. Shutdown effect on the fourth quarter of last year: initial estimate halved to 0.7%. Tensions also on prices: inflation at 2.8%
The US Commerce Department today lowered its second estimate of US economic growth in the last quarter of last year from 1.4 percent to 0.7 percent. This surprised Wall Street analysts who had expected an improvement to 1.5 percent, business television channel CNBC reported.
US GDP growth signals weaker economy than expected
Economic growth in the US was slower at the end of 2025 than initially estimated, and inflationary pressures persisted at the start of this year, underscoring vulnerabilities in the economy even before the conflict in Iran began.While consumer spending rose in January, economists are worried that consumption will take a hit from the conflict-fueled surging oil prices, the impact of which is already being felt at US gas pumps.Along with unexpecte…
The United States is stronger, better and richer than ever, declared US President Donald Trump in his traditional State of the Union address at the end of February. However, his words are contradicted by revised data on the development of the US economy. According to the local Labor Department, its growth slowed to 0.7 percent in the fourth quarter of last year from 4.4 percent in the previous quarter. Analysts had originally expected growth of …
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