Economy showed cracks pre-Iran attack, data shows

The U.S. economy grew at only 0.7% annualized rate in the fourth quarter of 2025, half the originally estimated 1.4%, while core inflation rose to 3.1% in January compared to a year ago, marking an increase from 2.7% in October. The Commerce Department data showed consumer spending barely moved with real personal expenditures rising just 0.1% in January, while the personal saving rate surged to 4.5% as consumers pulled back on spending. Job openings jumped by 396,000 in January, pushing the job openings rate to 4.2% from 4% in December, providing some positive economic signals. Economist Kathy Bostjancic warned that "inflation trajectory will only steepen in the coming months" due to surging gasoline, diesel and fertilizer prices from the Iran war.