US economic growth sharply slower than estimated in fourth quarter

For the full year of 2025, GDP growth was 2.1 percent, just a touch below the 2.2 percent previously estimated.

The US economy grew at a significantly slower pace than initially estimated for the final months of 2025, government data showed Friday, due to cooler than expected consumer and government spending, among other factors.

US GDP rose at an annual rate of 0.7 percent in the fourth quarter, the Commerce Department said, sharply down from its earlier estimated 1.4 percent.

The major downgrade reflected "downward revisions to exports, consumer spending, government spending, and investment," the department said.

Imports decreased less than initially calculated, it added.

For the full year of 2025, GDP growth was 2.1 percent, just a touch below the 2.2 percent previously estimated.

The tepid showing caps the first full year of President Donald Trump's return to the White House and comes at a time when worries over a cooling jobs market and stubborn inflation are growing.

But the Republican leader had been quick to blame a lengthy government shutdown late last year when early estimates were released.

In the third quarter, US GDP rose by a much higher 4.4 percent, the Commerce Department said.