US GDP Growth Slows to 1.4% in Q4 2025 Amid Government Shutdown

The U.S. economy grew at a 1.4% annual rate in the fourth quarter of 2025, missing forecasts and down from a 4.3% pace, the Commerce Department reported on February 20, 2026. The slowdown was primarily driven by a 43-day government shutdown that reduced growth by roughly 1 percentage point. Consumer spending increased 2.4%, while the Personal Consumption Expenditures price index rose 2.9% annually in December. Analysts expect a recovery in 2026, with Capital Economics projecting 3% growth for the first quarter.