U.S. Growth Slows Sharply In Final Quarter Of 2025

The U.S. economy grew at a slower pace in the final months of 2025, expanding at an annual rate of just 0.7 percent in the fourth quarter. According to a report by the U.S. Commerce Department cited by Associated Press, the revised figure is significantly lower than the government’s earlier estimate of 1.4 percent.

The slowdown was largely tied to a 43 day federal government shutdown that sharply reduced government spending. The report said federal spending and investment fell at a 16.7 percent rate, cutting more than one percentage point from overall economic growth.

The U.S. economy grew at a 0.7% annual rate in Q4, according to newly revised government data. The number is a downgrade from the initial estimate, which had the economy growing at a 1.4% rate.

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Consumer spending increased by 2 percent in the quarter, but that was weaker than earlier estimates. Exports also declined by 3.3 percent, while business investment slowed compared with previous quarters.

For the full year, the U.S. economy grew 2.1 percent. Analysts said rising oil prices linked to the conflict with Iran and a weakening labor market are adding pressure to the outlook under the administration of Donald Trump.

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