US economic growth slowed in fourth quarter of 2025 amid government shutdown
TL;DR
GDP grew 1.4% last quarter, down from economists’ forecast of 3%, though AI and tax cuts could boost growth this year Business live – latest updates US economic growth slowed more than expected in the fourth quarter amid disruptions from last year’s government shutdown and a moderation in consumer spending, but tax cuts and investment in artificial intelligence were expected to support activity this year. Gross domestic product (GDP) increased at a 1.4% annualized rate last quarter, the commerce department’s Bureau of Economic Analysis said in its advance estimate of fourth-quarter GDP on Friday. Economists polled by Reuters had forecast GDP rising at a 3.0% pace. The survey was, however, completed before data on Thursday showing the trade deficit widening to a five-month high in December. Continue reading...
Nauti's Take
Interesting that AI is being positioned as the economic wildcard while traditional growth drivers sputtered. Whether the tech bet pays off or just serves as political narrative will become clear in 2025. AI investment creates jobs and infrastructure – but not overnight GDP growth.
Summary
GDP grew 1.4% last quarter, down from economists’ forecast of 3%, though AI and tax cuts could boost growth this year Business live – latest updates US economic growth slowed more than expected in the fourth quarter amid disruptions from last year’s government shutdown and a moderation in consumer spending, but tax cuts and investment in artificial intelligence were expected to support activity this year. Gross domestic product (GDP) increased at a 1.4% annualized rate last quarter, the commerce department’s Bureau of Economic Analysis said in its advance estimate of fourth-quarter GDP on Friday.
Economists polled by Reuters had forecast GDP rising at a 3.0% pace. The survey was, however, completed before data on Thursday showing the trade deficit widening to a five-month high in December.
Continue reading...
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