U.S. economic growth at the end of 2025 was half as strong as previously estimated.<\/p>\n
Between October and December, America\u2019s gross domestic product grew just 0.7 percent, revised down from 1.4 percent, according to the U.S. Bureau of Economic Analysis<\/a> Friday.\u00a0<\/p>\n This new number represented downward revisions in exports, consumer spending, government spending, and investment. The biggest revision was in exports, which dropped to -3.3 from the initial estimate of -0.9 percent. The biggest contributing factor to the fourth-quarter economic slowdown was the government shutdown. \u00a0<\/p>\n On the whole, real GDP increased 2.1 percent in 2025, which is still considered normal. If GDP growth is beneath 2 percent annually<\/a>, that can typically be considered a recession.\u00a0<\/p>\n Meanwhile, core personal consumption expenditure, or PCE, inflation rose 3.1 percent<\/a> on a 12-month basis. (That doesn\u2019t include volatile food and energy costs.) Orders for durable goods did not see<\/a> an expected increase of 1.3 percent, rising only 0.4 percent.<\/p>\n This significantly weaker economic growth has set the stage for Donald Trump\u2019s increasingly expensive<\/a> war in Iran. The president\u2019s illegal military campaign there has triggered disruptions in global trade and sent prices at the gas pump surging.\u00a0<\/p>\n \u201cThe big downward revision in GDP is a gut check going into this energy crunch, increasing the risk of stagflation,\u201d David Russell, global head of market strategy at TradeStation, wrote in an analyst note<\/a> Friday. \u201cThe soft January durable goods data also suggests the economy entered this crisis weaker than hoped. This creates challenges for investors with PCE inflation still running well above the Fed\u2019s target.\u201d<\/p>\n Consumer spending remained relatively stable amid the backdrop of a labor market that has only gotten worse. In Q4, the U.S. job market shed 116,00 jobs<\/a>\u2014only slightly more than the 92,000 jobs<\/a> it lost in February alone.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"U.S. economic growth at the end of 2025 was half as strong as previously estimated. Between October and…\n","protected":false},"author":2,"featured_media":338159,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[24460,114,5746,165762,9575,22355,37389,29091,3387,85,46],"class_list":["post-338158","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bureau-of-economic-analysis","tag-business","tag-consumer-spending","tag-downward-revision","tag-economic-growth","tag-economic-slowdown","tag-government-shutdown","tag-government-spending","tag-gross-domestic-product","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/338158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=338158"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/338158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/338159"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=338158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=338158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=338158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}