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US Economy Grew at 1.4% Rate in Final Quarter of 2025, Well Below Expectations

The six-week federal shutdown cut government spending by about 1 percentage point, while AI investment and consumer spending helped moderate the slowdown, Commerce Department said.

  • On Friday, the Department of Commerce said the US expanded at 1.4 percent in Q4 2025, with full-year growth at 2.2 percent, down from 2.8 percent.
  • After the shutdown, some analysts estimate fourth-quarter GDP would have been closer to 2.4 percent, with Trump claiming `Democrat Shutdown cost the U.S.A. at least two points in GDP,` on Truth Social.
  • Commerce Department figures showed Q4 2025 growth slowed due to weaker government spending, exports, and consumer spending but was partly offset by investment gains, said Heather Long, Navy Federal Credit Union chief economist, noting "Solid consumption and the AI boom kept the economy growing."
  • Following the release, Trump criticized the Federal Reserve and outgoing Chairman Jerome Powell, calling for `LOWER INTEREST RATES`, after posting shutdown claims on Truth Social and ushering reporters out.
  • The PCE index was up 2.5 percent in December, and analysts warn this could complicate Federal Reserve rate decisions, highlighting economic challenges for the Trump administration.
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The Times of Northwest IndianaThe Times of Northwest Indiana
+2 Reposted by 2 other sources
Center

Report: Growth slowed in the fourth quarter

WASHINGTON — U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending.

·Cherokee County, United States
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Reuters broke the news in United Kingdom on Friday, February 20, 2026.
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