US economic growth likely slowed to a solid pace in the fourth quarter as shutdown and inflation weighed on spending

US economic growth likely cooled to 3% in the fourth quarter after a record government shutdown. AI investment remains a boost despite an affordability crisis.

Economic growth in the US USUS likely slowed during the fourth quarter as disruptions from last year’s government shutdown and a moderation in consumer spending weighed on activity. The U.S. Commerce Department is set to release its delayed advance estimate of gross domestic product, providing the first official quarterly reading since the economy experienced two consecutive quarters of robust growth. This report, which was postponed by a record 43-day government shutdown, is expected to shape near-term assessments of inflation and the strength of the labor market.
People shop at a Costco store in the Staten Island borough of New York City, U.S., on January 16, 2026. REUTERS/Brendan McDermid/File Photo
People shop at a Costco store in the Staten Island borough of New York City, U.S., on January 16, 2026. REUTERS/Brendan McDermid/File Photo
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