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US Economy Slows Sharply in Late 2025
10 Apr
Summary
- Fourth-quarter GDP grew at a slower 0.5% pace.
- Downward revision mainly due to investment changes.
- First-quarter GDP estimate due April 30.
Gross domestic product (GDP) expansion in the United States decelerated more than initially anticipated during the fourth quarter of 2025. The Commerce Department announced a revised annualized growth rate of 0.5% for the period.
This figure represents a downward adjustment from previous estimates, which had placed the growth at 0.7%, and considerably lower than the initial 1.4% projection. The economic activity in the third quarter of 2025 had been robust, reaching a 4.4% growth rate.
The revised GDP figure was largely influenced by a reduction in investment calculations. Specifically, private inventory investment, especially within the wholesale trade sector, contributed to this downward revision.
Looking ahead, the Commerce Department is scheduled to release its first official estimate for first-quarter 2026 GDP growth on April 30. This upcoming data will provide further insight into the economy's trajectory.
