Summary
Economic growth in the U.S. slowed in the last three months of last year, partly due to a government shutdown and reduced consumer spending. The country's gross domestic product (GDP) increased by 1.4% in the fourth quarter, which was much less than the growth in previous quarters. The decline in government spending during the shutdown had a significant impact on growth.
Key Facts
- U.S. economic growth was 1.4% in the fourth quarter of last year.
- The federal government shutdown lasted six weeks and impacted economic growth.
- Consumer spending grew by 2.4% in the fourth quarter, less than the 3.5% growth in the third quarter.
- Federal government spending fell by nearly 17% during the shutdown.
- The decline in government spending reduced GDP growth by one percentage point.
- Companies increased imports earlier in the year to avoid tariffs, which affected trade figures in later quarters.
- Inflation rose in December, with higher prices for goods like furniture and groceries.
- President Trump commented that the shutdown cost the economy two percentage points in GDP growth.
