US economy grew far slower than expected in fourth quarter

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US economy grew far slower than expected in fourth quarter

The U.S. economy grew far slower than expected in the final three months of 2025, according to data released Friday by the Bureau of Economic Analysis.

U.S. gross domestic product (GDP) rose at an annualized rate of 1.4 percent during the fourth quarter. Economists expected the U.S. economy to have grown at a 3 percent annualized rate, according to consensus projections.

Prices, however, grew slightly faster than expected during the fourth quarter. The personal consumption expenditures price index was up 2.9 percent over the past year and 0.4 percent in January, edging above expectations of a 2.8 percent annual inflation rate and a 0.3 percent monthly increase in prices.

The 43-day government shutdown during the fourth quarter appeared to take a significant chunk out of year-end GDP growth. Thousands of federal workers were furloughed during the appropriations lapse, costing many American households much, if not all, of their income.

“The government shutdown hurt growth at the end of 2025. The economy will likely bounce back in early 2026, but it isn’t harmless to do prolonged shutdown,” wrote Heather Long, chief economist at Navy Federal Credit Union, in an analysis.

President Trump fumed about the shutdown’s impact on economic growth in a post on Truth Social published before the data was released.

“The Democrat Shutdown cost the U.S.A. at least two points in GDP. That’s why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES. “Two Late” Powell is the WORST!!! President DJT,” Trump said on Truth Social, also knocking the Federal Reserve chair and the central bank.

Federal law prohibits executive branch employees, including the president, from discussing certain economic data before and within the first hour after its release.

The GDP report itself was also delayed by a subsequent partial government shutdown during the first week of February. Lawmakers eventually struck a deal to restore funding to all departments but the Department of Homeland Security.

Updated at 9:18 a.m. EST

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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