U.S. Economy Misses 3 Percent Forecast in Q4 of 2025
The slowdown marks a steep drop from the third quarter, when gross domestic product surged 4.4%, according to data released Friday by the Bureau of Economic Analysis.
In its report, the agency said: "The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment.
"These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased."
The BEA noted that weaker government outlays and softer exports drove much of the deceleration compared with the prior quarter. Consumer spending also moderated, though stronger investment provided some counterbalance. Imports fell again, but the contraction was less pronounced than in the third quarter.
Reacting to the figures, U.S. President Donald Trump pointed to political gridlock as a drag on growth. Posting on the U.S.-based social media platform Truth, he said: "The Democrat Shutdown cost the U.S.A. at least two points in GDP.
"That’s why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES. 'Two Late' Powell is the WORST!!!"
The latest data underscores mounting pressure on policymakers as economic momentum fades heading into 2026.
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