US GDP Growth Slows to 1.4% in Final Quarter of 2025
The US economy experienced a significant slowdown in growth during the final three months of 2025. Gross Domestic Product (GDP), the comprehensive measure of all goods and services produced within the nation, registered an annualized rate of just 1.4% from October through December. This figure, released by the Commerce Department on Friday, represents a marked deceleration from the robust 4.4% growth seen in the third quarter and falls short of the 1.9% rate predicted by economists surveyed by FactSet.
2025: A Year of Moderate Economic Expansion
Despite headwinds, the US economy managed to expand by 2.2% throughout 2025 as a whole. However, this represents the slowest annual growth rate since 2020, highlighting the challenges faced during the year.
Government Shutdown’s Impact
The release of the fourth-quarter GDP data was delayed by a month due to last year’s historic government shutdown, underscoring the disruptive effects of political uncertainty on economic measurement and potentially, on economic activity itself. The shutdown undoubtedly contributed to the weaker-than-expected growth figures.
Resilience Amidst Challenges
Despite facing challenges such as President Trump’s trade tariffs, comparatively weak job creation, and increasing household debt levels, the US economy demonstrated resilience by remaining positive throughout the year. This suggests underlying strengths within the economy, even as it navigates complex economic conditions.
Market Reaction
News of the slower GDP growth triggered a negative reaction in stock futures markets. Dow futures declined by 111 points (0.23%), while S&P 500 futures fell 0.3%. The Nasdaq 100 futures experienced a more substantial drop of 0.48%. These movements indicate investor concerns about the economic outlook.
Further Updates: This is a developing story and will be updated as more information becomes available.
Source: CNN, with contributions from John Towfighi. Stock quote data provided by BATS.
Bureau of Economic Analysis (BEA) – GDP Data
