February 20, 2026 at 11:07AM
US economic growth weaker than thought in fourth quarter with government shutdown, consumer pullback
U.S. fourth-quarter economic growth was weaker than previously estimated, reflecting declines in government and consumer spending. The government noted a pullback in government expenditures and slower household consumption as key drags on the quarterly expansion.
The softer performance suggests underlying softness in demand and possible headwinds from fiscal constraints and higher interest costs, contributing to a cooler pace of growth as the year ended.
Analysts will watch for revisions to consumer and government components and assess implications for near-term policy and the broader outlook.