Economic growth increased during the fourth quarter of 2025, rising 1.4%, which is down from 4.4% in the third quarter and 3.8% in the second quarter, according to The Associated Press. Economists had been expecting growth of 3%.
The slower growth reportedly was influenced by the government shutdown and weaker consumer spending.
Consumer spending, which accounts for 70% of U.S. GDP, rose 2.4% during the fourth quarter, which is down from 3.5% in the third quarter.
The economy reportedly is growing steadily, but without creating many jobs. The Associated Press said 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 said the gap could be attributed in part to immigration enforcement; uncertainty regarding artificial intelligence; and the cost of tariffs.
