US economy grew much more slowly than previously reported in fourth quarter
By Bryan Mena, CNN
Washington (CNN) — US economic growth was even weaker than previously reported at the end of last year, dragged down by the historic government shutdown and a slowdown in consumer spending.
Gross domestic product, the broadest measure of economic output, expanded at an annualized rate of 0.7% in the October-through-December period, the Commerce Department said Friday in its second estimate. That’s down sharply from the 1.4% rate initially reported, and a much slower pace than the 4.4% in the third quarter.
The fourth quarter capped a tumultuous year for the US economy as President Donald Trump waged a bid to reshape global trade and businesses ramped up investments in AI while slamming the brakes on hiring. Yet, despite the uncertainty, American shoppers continued to open their wallets.
In 2026, the US economy is facing the economic effects of Trump’s war on Iran, which has already sent oil prices skyrocketing.
The oil shock comes as the US labor market remains in a precarious state, with employers shedding 92,000 jobs in February as the unemployment rate rose to 4.4% from 4.3%.
This story is developing and will be updated.
The-CNN-Wire
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