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Economy showed cracks pre-Iran attack, data shows

<p>The economy was flashing stagflation signals — tepid growth and high inflation — even before the <a href="https://www.axios.com/world/iran" target="_blank">Iran</a> conflict added an oil shock to the mix.</p><p><strong>Why it matters:</strong> What happens when geopolitical turmoil clogs up the world's oil supply chain, against a backdrop of a U.S. economy losing momentum amid sticky inflation?</p><ul><li>We're about to find out.</li></ul><hr><p><strong>Driving the news:</strong> A revision to fourth-quarter GDP shows the economy grew at only a 0.7% annualized rate in the final months of 2025, half as much as the 1.4% growth rate originally estimated.</p><ul><li>Real final sales to private domestic purchasers, an underlying measure of growth that sums up consumer spending and private investment, rose at a 1.9% annual rate in the fourth quarter — a downward revision of 0.5 percentage point.</li></ul><p><strong>By the numbers: </strong>Also Friday morning, the Commerce Department r...