US Q4 GDP Growth Revised Further Down

2026-04-09 12:37 By Joana Taborda 1 min. read

The US economy expanded at an annualized rate of 0.5% in Q4 2025, revised down further from 0.7% in the second estimate and 1.4% in the preliminary reading, mainly due to a downward revision to investment.

Consumer spending slowed more than anticipated (1.9% vs 2% in the second estimate), as purchases of both goods (0.3%) and services (2.7%) cooled.

Fixed investment also increased less than expected (1.5% vs 1.6%), largely due to a sharp drop in structures (-6.5%) while investment in equipment (4.3%) and intellectual property products (5.4%) remained robust.

Residential investment fell more than anticipated (-1.7% vs -0.5%).

Exports declined 3.2%, compared to a 3.3% fall, marking the largest contraction since Q2 2023.

Imports also fell slightly less than early estimated (-1.0% vs. -1.1%).

Meanwhile, government spending and investment contracted sharply (-5.6% vs -5.8%), subtracting 0.99 pp from overall growth, due to the government shutdown.

For 2025, the US economy expanded by 2.1%.



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US Q4 GDP Growth Revised Further Down
The US economy expanded at an annualized rate of 0.5% in Q4 2025, revised down further from 0.7% in the second estimate and 1.4% in the preliminary reading, mainly due to a downward revision to investment. Consumer spending slowed more than anticipated (1.9% vs 2% in the second estimate), as purchases of both goods (0.3%) and services (2.7%) cooled. Fixed investment also increased less than expected (1.5% vs 1.6%), largely due to a sharp drop in structures (-6.5%) while investment in equipment (4.3%) and intellectual property products (5.4%) remained robust. Residential investment fell more than anticipated (-1.7% vs -0.5%). Exports declined 3.2%, compared to a 3.3% fall, marking the largest contraction since Q2 2023. Imports also fell slightly less than early estimated (-1.0% vs. -1.1%). Meanwhile, government spending and investment contracted sharply (-5.6% vs -5.8%), subtracting 0.99 pp from overall growth, due to the government shutdown. For 2025, the US economy expanded by 2.1%.
2026-04-09
US GDP Growth Revised Sharply Lower
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.
2026-03-13
US GDP Growth Well Below Forecasts
The US economy expanded an annualized 1.4% in Q4 2025, the least since Q1 2025, following a 4.4% growth in Q3 and well below forecasts of 3%, the advance estimate showed. Consumer spending slowed (2.4% vs 3.5%), weighed down by a 0.1% decline in goods purchases, while services spending rose 3.4%. Meanwhile, exports fell 0.9% after surging 9.6% in Q3, and imports also declined, though at a slower pace (-1.3% vs -4.4%). Government spending and investment contracted sharply by 5.1% (vs 2.2%), subtracting 0.9 pp from overall growth, due to the government shutdown. On the other hand, fixed investment accelerated (2.6% vs 0.8%), driven by strong gains in intellectual property products (7.4% vs 5.6%) and equipment (3.2% vs 5.2%), as well as a more moderate decline in structures (-2.4% vs -5.0%). The drop in residential investment also eased (-1.5% vs -7.1%). Considering full 2025, the US economy expanded 2.2%, below 2.8% in 2024, reflecting increases in consumer spending and investment.
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