US Q4 GDP Growth Downgraded

The United States economy experienced an unexpectedly sluggish 0.7% annual growth rate in the fourth quarter of 2025, a significant downgrade from the initial estimate of 1.4%. This slowdown was primarily attributed to a 43-day government shutdown, which led to a 16.7% plunge in federal government spending and investment. Consumer spending also slowed, and exports fell. The job market in the United States is in a slump, with 92,000 jobs cut last month and fewer than 10,000 jobs added per month in 2025. The war with Iran has further clouded the economic outlook by driving up oil and gas prices. Economists are debating whether hiring will accelerate or if economic growth will slow to reflect the weak labor market, or if Artificial intelligence and automation will allow for growth without significant job creation. The United States — United States Department of Commerce reported these figures, with the final report due on April 9.