Us Growth Slowed
- 4 hours ago
- 1 min read
Us GDP grew at an annualised rate of 1.4 in Q4 2025
Growth in Q3 2025 was 4.4%.
Full-year economic growth in 2025 was 2.2%.
Consumer spending rose 2.4% in Q4 (down from 3.5% in Q3).
Government spending fell by more than 16% in Q4.
The federal government shutdown reduced GDP by an estimated 1 percentage point.
President Donald Trump claimed the shutdown cost “at least two points” of GDP.
Early 2025 saw a mild contraction due partly to a surge in imports ahead of tariffs.
Imports subtract from GDP calculations.
The trade deficit widened in December.
Private investment increased but was concentrated in intellectual property and IT equipment.
The PCE inflation index rose to 2.9% in December (up from 2.8%).
The PCE index is the Federal Reserve’s preferred inflation measure.
Rising inflation could delay potential Federal Reserve interest rate cuts.
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