US Edition
US Economy Grew at 1.4% Rate in Final Quarter of 2025, Well Below Expectations
The 1.4% GDP growth in Q4 2025 was slowed by a 43-day federal government shutdown that cut spending by nearly 17%, despite AI-driven business investment gains, the 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.
187 Articles
187 Articles
U.S. GDP Growth Slowed for Q4 2025
U.S. economic growth cooled significantly in the fourth quarter of 2025, which the Trump administration attributed to last fall’s record-long federal government shutdown and softer consumer spending. Gross domestic product rose at a 1.4 percent seasonally adjusted, inflation-adjusted annual rate in the final three months of last year, the Commerce Department said Friday, well below the 2.5 percent pace expected by economists. The reading marked …
U.S. Economy: Forecasted Rebound & Growth Projections
U.S. Economy: Forecasted Rebound & Growth Projections During an appearance on Fox News' 'The Will Cain Show,' U.S. Treasury Secretary Scott Bessent expressed optimism for the nation's economic future, forecasting a growth rate of 3.5% by 2026.Bessent pointed to the steep decline in the fourth quarter gross domestic product (GDP) of just 1.4% as a consequence of external disruptions, notably a prolonged government shutdown.He emphasized that the …
The U.S. economy slowed sharply in late 2025 to crown a volatile year in which consumer spending and an AI investment boom helped keep growth going despite tariffs, uncertainty, and the longest government shutdown ever. Gross domestic product, adjusted for inflation, grew at an annual rate of 1.4% in the last three months of the year, the Department of Commerce reported on Friday. That was a decline from a rate of 4.4 percent in the third quarte…
The US economic growth in the last three months of last year was only 1.4 percent, significantly lower than the growth in the previous quarter (4.4 percent), as well as in the quarter before that (3.8 percent), the US Department of Commerce announced today.
The US economy developed rather weakly at the end of 2025. Gross domestic product rose significantly less than experts expected. Is shutdown a reason for this?
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