US GDP Growth Revised Sharply Lower

2026-03-13 12:33 By Joana Taborda 1 min. read

The US economy expanded an annualized 0.7% in Q4 2025, the weakest performance since Q1 2025 and well below 1.4% in the advance estimate.

Consumer spending slowed more than anticipated (2% vs 2.4% in the advance estimate), as purchases of both goods (0.4%) and services (2.7%) cooled.

Fixed investment also increased less than expected (1.6% vs 2.6%), largely due to a sharper drop in structures (-7.1%) while investment in equipment (3.9%) and intellectual property products (5.7%) remained robust.

Residential investment nearly stabilized (-0.5%).

Exports declined at a faster pace of 3.3%, compared with the initial estimate of a 0.9% drop, marking the largest contraction since Q2 2023.

Imports also fell (-1.1% vs. -1.3%).

Meanwhile, government spending and investment contracted sharply (-5.8% vs -5.1%), subtracting 1.03 pp from overall growth, due to the government shutdown.

For 2025, the US economy expanded by 2.1%, slightly below the initial estimate of 2.2% and down from 2.8% in 2024.



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