Overview
- The Commerce Department, which issued its final fourth‑quarter figure Thursday, put growth at a 0.5% annual rate and said 2025 rose 2.1% for the year.
- A 43‑day federal shutdown cut government spending and investment by 16.6%, subtracting about 1.16 percentage points from fourth‑quarter GDP.
- Consumer spending slowed to a 1.9% annual pace in the quarter, signaling cooler demand at the end of 2025.
- Business investment was revised lower, including inventories and intellectual property, yet corporate profits jumped by $246.9 billion in the quarter.
- Hiring sagged in 2025 and early‑2026 payrolls swung from gains to losses to gains, while higher oil prices after recent military action involving Iran now add downside risk before the April 30 report.