Economic growth downgraded to 0.5 percent in fourth quarter of 2025
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The Bottom Line
US economic growth slowed to 0.5 percent in Q4 2025, a downgrade from previous expectations.
How This Affects You
A significant slowdown in economic activity could impact job markets and financial stability for average Americans.
AI Summary
The Commerce Department reported that U.S. economic growth slowed to an annual rate of 0.5 percent in the fourth quarter of 2025. This figure represents a downgrade from previous expectations for the October, November, and December period. The significant slowdown in real gross domestic product (GDP) coincided with a lengthy government shutdown during those months. This indicates a substantial deceleration in economic activity, potentially impacting the Trump administration's economic outlook. The revised data suggests a weaker economic performance at the close of last year than initially projected.
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