U.S. GDP Growth Slows to 0.5% in Q4 2025

Commerce Department's third estimate shows weaker economic expansion in final quarter of 2025.

Apr. 9, 2026 at 5:14pm

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An abstract illustration using simple geometric shapes and muted colors to convey the concept of slowing economic growth in the United States.Slowing GDP growth in the final quarter of 2025 raises concerns about the overall health of the U.S. economy.NYC Today

The U.S. Commerce Department's third estimate report released on Thursday showed that the country's gross domestic product (GDP) increased at an annual rate of 0.5% in the fourth quarter of 2025, a 0.2 percentage point downward revision from the previous estimate.

Why it matters

Slower GDP growth is a key indicator of an economic slowdown, which can have widespread impacts on consumer spending, business investment, employment, and government revenues. The Q4 2025 figure represents a significant deceleration from the previous quarter and raises concerns about the overall health of the U.S. economy.

The details

The Commerce Department cited downward revisions to consumer spending and business investment as the primary drivers behind the lower GDP growth rate in Q4 2025. Economists will closely monitor the next round of economic data to determine if this is an isolated dip or the start of a broader economic downturn.

  • The Commerce Department released its third estimate report on April 9, 2026.
  • The Q4 2025 GDP growth rate was initially estimated at 0.7% in the second estimate.

The players

U.S. Commerce Department

The federal agency responsible for collecting and publishing economic data, including the GDP report.

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What’s next

Economists will be closely watching the first quarter 2026 GDP report, scheduled for release in late April, to see if the slowdown in Q4 2025 continues or if the economy rebounds.

The takeaway

The weaker than expected Q4 2025 GDP growth is a concerning sign for the U.S. economy, raising the possibility of a broader economic slowdown. Policymakers and businesses will be closely monitoring the next round of economic data to determine if additional stimulus or other measures are needed to spur growth.