US Fourth Quarter GDP Growth Revised Down to 0.7 Percent
US GDP growth was revised down to 0.7 percent for the fourth quarter. Lower consumer spending and business investment contributed to the sharp slowdown.
Economic growth in the United States slowed more sharply than previously estimated during the fourth quarter. According to the Bureau of Economic Analysis, gross domestic product increased at an annualized rate of 0.7%, a significant downward revision from the 1.4% pace reported in the initial estimate. This result fell short of expectations from economists polled by Reuters, who had anticipated the growth rate to remain unchanged at 1.4%.
The deceleration follows a robust 4.4% expansion recorded in the third quarter. The revised figures reflect lower-than-expected consumer spending and business investment. Additionally, downgrades to government spending—specifically regarding state and local infrastructure—and weaker export growth weighed on the final tally. The economy also felt the impact of a record 43-day government shutdown that occurred last year.
