US economy grew far slower than expected in fourth quarter

The Hill

by Sylvan Lane

February 20, 2026

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US economy grew far slower than expected in fourth quarter

The U.S. economy grew at a slower-than-expected pace in the fourth quarter of 2025, with the Bureau of Economic Analysis reporting a 1.4% annualized growth rate in gross domestic product (GDP). This figure fell far short of economists' forecasts, which had anticipated a 3% increase. The underperformance was driven by weak consumer spending and cautious business investment, reflecting broader economic headwinds. Despite this slowdown, the U.S. economy still managed to expand, albeit at a modest pace. The tepid growth reflects several factors weighing on the economy, including persistent inflationary pressures, rising interest rates, and reduced corporate confidence. Consumer spending, which accounts for the majority of GDP growth, showed signs of cooling as households faced higher

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Originally published on The Hill on 2/20/2026