Trending Now - US Economy Grows Slowly at 0.7% Amid Rising Tensions

WHO:

President Trump

David Russell, global head of market strategy at TradeStation

Sonu Varghese, chief macro strategist at Carson Group

Commerce Department

WHAT:

The U.S. economy expanded at a rate of 0.7% in the fourth quarter of 2025, down from the previously reported 1.4%.

The economy grew at a pace of 2.1% for the entire year of 2025, revised down from an initial estimate of 2.2%.

Exports were revised down to -3.3%, compared to -0.9% in the first estimate.

Federal government spending and investment fell at a rate of 16.7%, reducing fourth-quarter growth by 1.16 percentage points.

Consumer spending grew at a rate of 2% in the fourth quarter, down from 3.5% in the third quarter.

Employers cut 92,000 jobs in February 2026, raising the unemployment rate to 4.4% from 4.3%.

Consumer spending held firm at a 0.4% rate in January 2026 from December 2025.

The Federal Reserve’s preferred inflation gauge showed an annual growth of 2.8% in January 2026, down from 2.9% in December 2025.

Monthly inflation was up 0.3% in January 2026 compared to 0.4% in December 2025.

The U.S. economy grew at an annualized rate of 0.7% in the fourth quarter of 2025.

This growth rate was revised down from an initial estimate of 1.4%.

The economy expanded by 2.1% for the entire year of 2025, down from an initial estimate of 2.2%.

Exports were revised down to -3.3%, compared to -0.9% in the first estimate.

Federal government spending and investment fell at a rate of 16.7%, reducing fourth-quarter growth by 1.16 percentage points.

Consumer spending grew at a rate of 2% in the fourth quarter, down from 3.5% in the third quarter.

Employers cut 92,000 jobs in February 2026, raising the unemployment rate to 4.4% from 4.3%.

WHERE:

United States

WHEN:

The fourth quarter of 2025 refers to the period from October through December 2025.

The final report on fourth-quarter growth is due on April 9th, 2026.

WHY:

The government shutdown lasting 43 days was a significant factor in the economic slowdown.

The war with Iran has driven up oil and gas prices, affecting the economic outlook.

The government shutdown, lasting 43 days, was a significant factor in the economic slowdown.

The war with Iran has driven up oil and gas prices, affecting the economic outlook.

HOW:

The GDP growth was calculated based on the total value of goods and services produced in the U.S.

The GDP growth was calculated based on the total value of goods and services produced in the U.S.

(UPDATED March 13, 2026 23:08 UTC)

Today, the U.S. economy showed signs of slowing down, with growth in the fourth quarter of 2025 revised down to 0.7%, a drop from the previously reported 1.4%. Additionally, employers cut 92,000 jobs in February, pushing the unemployment rate up to 4.4%, while consumer spending grew at a slower pace of 2% in the fourth quarter compared to 3.5% in the third quarter. Analysts attribute this economic slowdown to factors like a 43-day government shutdown and rising oil and gas prices due to the ongoing conflict with Iran.

--

(UPDATED March 13, 2026 15:10 UTC)

Today, President Trump, along with experts like David Russell from TradeStation and Sonu Varghese from Carson Group, discussed the latest economic data showing that the U.S. economy grew at an annualized rate of just 0.7% in the fourth quarter of 2025, a revision down from an initial estimate of 1.4%. The overall growth for 2025 was also adjusted to 2.1%, with significant factors like a 16.7% drop in federal spending and a decline in exports contributing to this slowdown, while consumer spending increased at a slower pace of 2%. Additionally, February saw employers cutting 92,000 jobs, pushing the unemployment rate up to 4.4%, as the ongoing war with Iran and a recent government shutdown continue to impact the economic landscape.