US economic growth weaker than thought in fourth quarter with government shutdown, consumer pullback - AP News
AP News
February 20, 2026
AI-Generated Deep Dive Summary
The U.S. economy grew more slowly than initially thought in the fourth quarter of 2018, with growth figures revised downward due to factors such as a partial government shutdown and weaker consumer spending. The revised GDP growth rate came in at just over 1%, down from an initial estimate of around 2%. This slowdown was attributed to a combination of reduced federal spending during the shutdown and a pullback in consumer activity, particularly during the holiday season.
Context plays a significant role in understanding this economic shift. While some factors, like the temporary nature of the government shutdown, are expected to fade, others—such as ongoing trade tensions and supply chain disruptions tied to tariffs—have had a more lasting impact on business investment and exports. Additionally, businesses have shown cautious optimism, with spending on equipment and software declining compared to previous quarters.
Looking ahead, this revised growth figure underscores the challenges faced by both consumers and businesses in the current economic landscape. For policymakers, it highlights the delicate balance between stimulating economic activity and avoiding deficits that could hinder long-term growth. For consumers, it serves as a reminder of the importance of cautious spending amid uncertain economic conditions. Businesses, particularly those reliant on global trade, must navigate ongoing uncertainties to sustain investments and innovation.
Ultimately, while the weaker-than-expected growth in the fourth quarter may signal a short-term slowdown, it also emphasizes the need for strategic planning and adaptability to ensure sustained economic recovery and resilience moving forward.
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Originally published on AP News on 2/20/2026