Economic Growth Slows in Fourth Quarter, Hurt by Government Shutdown

The U.S. economy grew more slowly the fourth quarter of last year, weighed down by last fall's record-long government shutdown and slower consumer spending.

U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a 1.4% seasonally and inflation adjusted annual rate in the final quarter of last year, the Commerce Department said Friday.

Economists surveyed by The Wall Street Journal expected a 2.5% reading.

The quarterly reading was a sharp slowdown from the summer's blistering 4.4% rate. Federal government spending declined at a 16.6% rate in the fourth quarter.

In 2025, the economy grew 2.2%, measured from the fourth quarter of the prior year. That was slower than 2.4% growth in 2024 and the weakest since 2022. Economists surveyed by the Journal last month expected growth of 2.3% for 2025.