WASHINGTON (AP) — The American economic system, slowed by final fall’s 43-day authorities shutdown, grew at a sluggish 0.5% annual tempo from October by means of December, the Commerce Division reported Thursday in downgrade of its earlier estimate.
U.S. gross home — the nation’s output of products and companies — decelerated within the fourth quarter after registering spectacular development of 4.4% from July by means of September and three.8% from April by means of June. The most recent quantity was marked down from the Commerce Division’s earlier estimate of 0.7% fourth-quarter development.
Federal authorities spending and funding fell at a 16.6% annual tempo due to the shutdown, lopping 1.16 share factors off fourth-quarter GDP development. Shopper spending expanded at a 1.9% tempo, down a notch from the earlier estimate and from 3.5% within the second quarter.
For all of 2025, the economic system grew 2.1% final 12 months, slower than 2.8% in 2024 and a couple of.9% in 2023.
The financial outlook for this 12 months is hazy after the U.S.-Israeli warfare with Iran drove up power costs and disrupted international commerce.
America’s job market slumped final 12 months — recording the weakest hiring exterior a recession since 2002 — however has been up and down up to now in 2026: Employers added a wholesome 160,000 jobs in January, slashed 133,000 in February, then created a shocking 178,000 in March.
Thursday’s report was the Commerce Division’s third and remaining estimate of fourth-quarter GDP. The primary have a look at January-March financial development is due April 30.