Economic Growth Slowed in Fourth Quarter, Hurt by Government Shutdown

February 20, 2026 at 08:36AM

Economic Growth Slowed in Fourth Quarter, Hurt by Government Shutdown

Economic growth slowed in the fourth quarter as a government shutdown dented activity. The latest data show U.S. GDP expanding at a 1.4% annual rate in Q4 2025, reflecting softer consumer spending and lingering drag from federal disruption. Analysts warn the slowdown could influence policymakers’ near-term outlook and interest-rate considerations.