The U.S. gross domestic product (GDP) increased at an annual rate of 0.5 percent in the fourth quarter of 2025, according to the third estimate report released Thursday by the U.S. Commerce Department.
The growth was revised down 0.2 percentage points from the second estimate, primarily reflecting a downward revision to investment. It is below market expectations for a 0.7 percent growth, and much lower than the 4.4 percent growth reported in the third quarter.
The downward revision primarily reflects a reduction in the contribution of investment to growth, according to the U.S. Commerce Department. Data showed that, under domestic private investment, the contribution of changes in private inventories to the quarter's economic growth rate was revised downward from 0.28 percentage points to 0.14 percentage points, while fixed investment's contribution to the economic growth was also lowered by 0.03 percentage points to 0.26 percentage points.
The sudden fall in U.S. GDP growth signals deeper economic weakness at a time when global uncertainty, policy shocks and demand pressures are rising together, local media reported Thursday.
The U.S. GDP rose 2.1 percent in 2025 on an annual basis, the same as previously estimated. The GDP increase in 2025 primarily reflected increases in consumer spending and investment, the report said.
The third report for the fourth quarter of 2025 was originally scheduled for March 27, 2026, but was rescheduled due to the October-November 2025 government shutdown.
US GDP growth in Q4 of 2025 revised lower to 0.5 pct
