US economy grew a sluggish 0.5% in fourth quarter, government says, downgrading previous estimate - MyNorthwest.com

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.