US Economy Falls Short of Expectations in Q4 2025: 1.4% Growth

Significant Slowdown in Growth Rate The US economy performed significantly below market expectations in the fourth quarter of 2025.
According to preliminary data, the economy grew by 1.4% during this period.
This rate, which is half of the 2.8% expected by market analysts, indicates a loss of momentum compared to previous quarters of the year.
Economic activity followed a volatile course throughout 2025.
After contracting by 0.6% in the first quarter, the economy grew by 3.8% in the second quarter and 4.4% in the third quarter.
With the final quarter figures, the total growth rate for the US economy in 2025 was recorded at 2.2%, falling below the 2.8% growth rate seen the previous year.
Consumption and Investment Support Growth The largest contributions to economic growth in the final quarter came from consumer spending and private sector investments.
However, a decrease in public spending and a decline in exports were the primary factors limiting the growth rate.
A reduction in imports mitigated the negative pressure on growth.
On the inflation front, the core Personal Consumption Expenditures (PCE) price index, which excludes food and energy items, increased by 2.7%.
Impact of the Government Shutdown The delay in the release of economic data was influenced by the federal government shutdown that began on October 1, 2025, and lasted for 43 days.
This period, caused by Congress's failure to approve the budget bill on time, went down in history as the longest government shutdown in the United States.
The shutdown ended with the signing of a budget bill providing funding for the federal government until the end of January.