News
Economic Growth · GDP · Q4 · US Economy
The U.S. economy experienced a significant deceleration in the fourth quarter of last year, with the Commerce Department revising its preliminary Gross Domestic Product (GDP) growth rate down to a mere 0.7% on an annualized, quarter-over-quarter basis.
This figure represents a substantial 0.7 percentage point reduction from the initial advance estimate of 1.4% and is markedly lower than the robust 4.4% growth recorded in the third quarter. The downward revision reflects weaker-than-expected performance across several key economic sectors.
Exports, consumer spending, and corporate investment all saw downward adjustments, indicating a broader slowdown in economic activity. Notably, trade, which initially provided a slight positive contribution, became a drag on growth in the preliminary assessment.
Furthermore, the temporary federal government shutdown contributed to a larger-than-anticipated decline in government expenditure. On an annual basis, the U.S. GDP growth for the entire last year was also slightly revised down to 2.1%.
This data suggests a loss of economic momentum heading into the new year, potentially impacting corporate earnings and investor sentiment.
US Q4 GDP Growth Slashed to 0.7%(current)
