U.S. GDP Growth Drops to 1.4% in Late 2025

U.S. real GDP for the fourth quarter of 2025 rose at a 1.4% annual rate, down from 4.4% in the third quarter, according to the the Bureau of Economic Analysis. Growth came from consumer spending and investment, partly offset by declines in government spending and exports, while imports decreased. Final sales to private domestic purchasers increased 2.4% after rising 2.9% earlier. Current dollar GDP rose 5.1%. Federal spending fell, cutting about 1.0% point from growth. Prices for gross domestic purchases rose 3.7%, the PCE price index increased 2.9%, and core PCE rose 2.7% For 2025, real GDP grew 2.2% after 2.8% in 2024, while annual PCE inflation held at 2.6%.