U.S. economy expanded at sluggish 0.7% in Q4, downgrading first estimate
13 hours ago
- #GDP Growth
- #Job Market
- #US Economy
- U.S. economy grew at a sluggish 0.7% annual rate in Q4 2025, downgraded from initial 1.4% estimate.
- Federal government spending plunged 16.7% due to the shutdown, reducing Q4 growth by 1.16 percentage points.
- 2025 GDP growth was 2.1%, slightly lower than initial estimates of 2.2% in 2024 and 2023.
- Consumer spending slowed to 2% in Q4 from 3.5% in Q3, while business investment (excluding housing) grew 2.2%.
- Job market slump: 92,000 jobs cut last month, with 2025 averaging fewer than 10,000 jobs added monthly.
- Economists debate whether hiring will catch up to GDP growth or if AI/automation will decouple job creation from economic expansion.