US economy slowed sharply in the fourth quarter, expanding at a rate of just 1.4%

By Bryan Mena, CNN

Washington (CNN) — The US economy grew at a much slower pace in the final months of 2025 as a wider trade deficit and the historic government shutdown weighed on growth.

Gross domestic product, which measures all the goods and services produced in the economy, registered at an annualized rate of 1.4% from October through December, the Commerce Department said Friday. That’s a marked slowdown from the 4.4% rate in the third quarter, and came in lower than the 1.9% rate economists projected in a poll by data firm FactSet. GDP is adjusted for seasonal swings and inflation.

The fourth-quarter reading was delayed a month because of last year’s government shutdown.

Still, the US economy ended the year with its head above water despite President Donald Trump’s expansive tariffs, unusually weak job growth, and rising household debt.

This story is developing and will be updated.

The-CNN-Wire
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