13.03.202612:33:10UTC+00US GDP Growth Revised Sharply Lower

The US economy grew at an annualized rate of 0.7% in Q4 2025, its weakest performance since Q1 2025 and well below the 1.4% pace reported in the advance estimate. Consumer spending decelerated more than initially thought, rising 2.0% instead of 2.4%, as growth in both goods (0.4%) and services (2.7%) purchases cooled. Fixed investment also increased less than previously estimated (1.6% vs 2.6%), driven by a steeper decline in structures (-7.1%), even as investment in equipment (3.9%) and intellectual property products (5.7%) remained solid. Residential investment was nearly flat, slipping just 0.5%.

External demand weakened, with exports falling 3.3%, a sharper drop than the 0.9% decline initially reported and the largest contraction since Q2 2023. Imports also decreased (-1.1% vs -1.3%). At the same time, government spending and investment contracted markedly (-5.8% vs -5.1%), subtracting 1.03 percentage points from overall growth, largely as a result of the government shutdown. For the full year 2025, the US economy expanded by 2.1%, slightly below the initial 2.2% estimate and down from 2.8% growth in 2024.