According to a January 2026 report, the US economy grew by what percentage in the fourth quarter of 2025?

The United States economy experienced a growth rate of 1.4 percent in the fourth quarter of 2025. This figure comes from the advance estimate released by the U.S. Bureau of Economic Analysis (BEA) on February 20, 2026, which provided a comprehensive look at the nation's economic activity during the final months of the year. This latest report indicated a notable deceleration compared to the third quarter of 2025, which saw a more robust 4.4 percent increase in real gross domestic product (GDP).

Several factors contributed to this more modest expansion. Increases in consumer spending and private investment were key drivers, indicating continued strength in household demand and business activity. However, these positive contributions were partly offset by decreases in government spending and exports, which weighed on the overall growth rate. The advance report for the fourth quarter of 2025 was initially slated for release in January 2026, but its publication was rescheduled due to a government shutdown that occurred in October and November of 2025.

Economists had largely anticipated a somewhat higher growth rate for the quarter, with many Wall Street forecasts hovering around 1.9 percent. The Federal Reserve's policy of maintaining interest rates near multi-decade highs for most of 2025, aimed at controlling inflation, also played a significant role in the economic landscape, though rates were cut in December. For the entirety of 2025, the U.S. economy grew by 2.2 percent, a slight decrease from the 2.8 percent growth observed in 2024. Understanding these quarterly GDP reports is crucial as they offer valuable insights into the health and direction of the nation's economy.