Investment, exports, consumer spending and government spending were contributors to the first-quarter real GDP increase. Imports, which are a subtraction in the calculation of GDP, also increased, the agency also said.
State of the Union: The decline was driven by the record-long government shutdown. The post U.S. GDP Growth Slowed for Q4 2025 appeared first on The American Conservative .
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 a steep slowdown from the third quarter’s 4.4 percent gain. Federal government spending fell at a 16.6 percent rate, subtracting nearly 1.2 percentage points from headline GDP. The department said the shutdown’s full impact “cannot be quantified,” though reduced services by federal…Open
The U.S. economy grew at a 2.2% pace overall in 2025, down from 2.8% in 2024