economy
March 13, 2026
U.S. Economy Slows Down
The U.S. economy experienced slower growth in the last quarter of 2025 than previously estimated, at just 0.7 percent, significantly lower than the previous estimate of 1.4 percent, and also below economists' expectations of around 1.5 percent growth, the Bureau of Economic Analysis (BEA) announced today.
TL;DR
- U.S. economic growth in Q4 2025 was revised down to 0.7% from a previous estimate of 1.4%.
- Economists had predicted growth of around 1.5%, making the actual figure a disappointment.
- This represents a significant deceleration from the 4.4% growth recorded in Q3 2025.
- Annual GDP growth for 2025 was 2.1%, lower than previously estimated and slower than 2024's 2.8%.
- Revisions were made due to adjustments in household spending, government spending, and exports, while import decline was less than anticipated.
- Personal consumption, a key economic driver, grew by 2.0% in Q4 2025, down from 3.5% in Q3.
- Inflation remains above the Federal Reserve's 2% target.
- The PCE price index rose 0.3% monthly and 2.8% annually in January 2026.
- Core PCE inflation (excluding food and energy) increased by 0.4% monthly and 3.1% annually.
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