ECONOMY

U.S. Q4 Growth Cools to 1.4% After Shutdown

PUBLISHED Feb 20, 2026, 9:53 AM ET

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Media Bias Meter

Sources: 6

Left 17%

Center 83%

Sources: 6

WASHINGTON The U.S. economy expanded at a 1.4 percent annual rate in the fourth quarter, the Commerce Department reported Friday, missing the 2.5 percent projection and following a 4.4 percent third-quarter gain. Full-year 2025 GDP rose 2.2 percent. Officials attributed the slowdown to declines in federal spending, weaker exports and softened consumer purchases, and noted that the autumn government shutdown reduced output by an estimated portion of the quarter. December inflation readings showed renewed upward pressure. Most analysts expect some activity trimmed by the shutdown to rebound in the current quarter. Based on 6 articles reviewed and supporting research.

By Adyan K. | JQJO News

Timeline of Events

October–mid-November 2025: Federal government shutdown halts operations and delays data.
December 2025: Consumer spending slows; PCE inflation shows a 0.4% increase for December.
January–February 2026: Analysts finalize assessments of shutdown economic drag and inflation trends.
20 February 2026: BEA/Commerce release shows Q4 GDP at 1.4% annualized and full-year 2025 GDP at 2.2%.
Late February 2026: Economists and policymakers evaluate likely Q1 rebound and monetary policy implications.

News Intelligence

The economy's slowdown can affect your wallet. You might see prices rise due to inflation. If you're planning big purchases or investments, keep an eye on these trends. It's a good time to review your budget.

Media Bias

Articles Published:: 6
Right Leaning:: 0
Left Leaning:: 1
Neutral:: 5

Who Benefited

Investors in sectors tied to government contracts and exporters could gain if public spending and global demand normalize, and firms with pricing power may offset inflation impacts.

Who Impacted

Lower-income and middle-income households suffered reduced purchasing power and higher debt burdens, while furloughed federal employees faced income disruption during the multiweek shutdown.

Media Bias

Articles Published:: 6
Right Leaning:: 0
Left Leaning:: 1
Neutral:: 5
Distribution:: Left 17%, Center 83%, Right 0%

Who Benefited

Investors in sectors tied to government contracts and exporters could gain if public spending and global demand normalize, and firms with pricing power may offset inflation impacts.

Who Impacted

Lower-income and middle-income households suffered reduced purchasing power and higher debt burdens, while furloughed federal employees faced income disruption during the multiweek shutdown.