ECONOMY

US GDP Slows To 0.5% In Fourth Quarter

PUBLISHED Apr 9, 2026, 9:54 AM ET

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Media Bias Meter

Sources: 5

Center 100%

Sources: 5

Washington. The Commerce Department reported Thursday that the U.S. economy grew at a 0.5% annualized rate in the fourth quarter (October–December), revising down from a prior 0.7% estimate and attributing much of the slowdown to a 43-day federal government shutdown that cut spending. The revision reduced full-year 2025 growth to 2.1%, below 2024's 2.8% and 2023's 2.9%; federal spending and investment contracted 16.6% annualized, subtracting 1.16 percentage points from Q4 GDP, while consumer spending rose 1.9%; officials warned the outlook this year is uncertain amid higher energy prices.

By Yusra M. | JQJO News

Timeline of Events

April–June: U.S. GDP grew 3.8% annualized.
July–September: U.S. GDP accelerated to 4.4% annualized.
Last fall: A 43-day federal government shutdown reduced federal spending and investment.
October–December: Commerce Department revised Q4 GDP to 0.5% annualized, downgraded from 0.7%.
Full-year 2025: U.S. GDP growth recorded at 2.1%, below prior years.

News Intelligence

The slower GDP growth could affect your wallet. When the economy slows, it can lead to job cuts and lower wage growth. Higher energy prices could also mean higher bills. Keep an eye on your budget and spending.

Media Bias

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

Who Benefited

Energy and defense companies and exporters of fossil fuels saw revenue support from higher energy prices and increased demand linked to global disruptions.

Who Impacted

Households faced slower income growth and higher energy costs, while public-sector contractors and government programs experienced reduced spending from the shutdown-related cuts.

Media Bias

Articles Published:: 5
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 5
Distribution:: Left 0%, Center 100%, Right 0%

Who Benefited

Energy and defense companies and exporters of fossil fuels saw revenue support from higher energy prices and increased demand linked to global disruptions.

Who Impacted

Households faced slower income growth and higher energy costs, while public-sector contractors and government programs experienced reduced spending from the shutdown-related cuts.