Financial News: U.S. Economy Grows Much Less Than Previously Estimated

U.S. Economy Grows Much Less Than Previously Estimated In Q4

03/13/2026 - 10:28:00 (RTTNews)

(RTTNews) - U.S. economic growth slowed by much more than previously estimated in the fourth quarter of 2025, according to a report released by the Commerce Department on Friday.

The report said gross domestic product increased by 0.7 percent in the fourth quarter compared to the previously estimated 1.4 percent jump. Economists had expected the pace of growth to be unrevised.

The much weaker than previously estimated GDP growth compares to a 4.4 percent surge in the third quarter of 2025.

The Commerce Department said the slower than previously estimated growth reflected downward revisions to exports, consumer spending, government spending, and investment.

The report also said the significant slowdown in GDP growth compared to the previous quarter reflected downturns in government spending and exports and a deceleration in consumer spending that were partly offset by an acceleration in investment.

On the inflation front, the Commerce Department said its personal consumption expenditures (PCE) price index surged by 2.9 percent in the fourth quarter after jumping by 2.8 percent in the third quarter, unchanged from the previous estimate.

The increase by the core PCE price index, which excludes food and energy prices, was also unrevised at 2.7 percent in the fourth quarter compared with 2.9 percent in the third quarter.

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