US economy hits the brakes as GDP slows to 1.4% in fourth quarter
AP News • • business
Key Points:
- U.S. GDP growth slowed to a 1.4% annual rate in Q4, down from 4.4% in Q3, largely due to a six-week federal government shutdown and reduced consumer spending.
- Consumer spending increased by 2.4%, a solid but slower pace compared to the previous quarter’s 3.5% gain, while federal government outlays dropped nearly 17% during the shutdown.
- Despite slower growth, underlying consumer and business spending remained mostly resilient, with the government shutdown shaving about one percentage point off GDP growth.
- Inflation accelerated in December according to the Fed’s preferred measure, and the economy is growing steadily but adding fewer jobs, influenced by slowed immigration, AI-related uncertainties,
