WASHINGTON (AP) — U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending. The nation’s gross domestic product — the output of goods and services — increased at a 1.4% annual rate in the fourth quarter, the […]
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US economy grows at 1.4% rate in the fourth quarter, slowed by the government shutdown
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WASHINGTON (AP) — U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending.
The nation’s gross domestic product — the output of goods and services — increased at a 1.4% annual rate in the fourth quarter, the Commerce Department reported Friday, down from 4.4% in the July-September quarter and 3.8% in the quarter before that.
Consumer spending rose just 2.4%, a significant slowdown from the third quarter’s healthy 3.5% gain.
Growth was a fairly healthy 2.2% in 2025, yet a government report last week showed that employers added less than 200,000 jobs last year — the fewest since COVID struck in 2020.
Economists point to several possible reasons for the gap: The Trump administration’s crackdown on immigration has sharply slowed population growth, reducing the number of people available to take jobs. It’s one reason that the unemployment rate rose only slightly — to 4.3% from 4% — last year.
Growth is solid, inflation has slowed a bit, and unemployment is low, but surveys show that Americans are generally gloomy about the economy. In January, a measure of consumer confidence fell to its lowest level since 2014, yet consumers have kept spending, propelling growth.
PHOTO- Hiring sign is displayed at a barbershop in Chicago, Thursday, Feb. 5, 2026. (AP Photo/Nam Y. Huh)