Fri, 20 Feb 2026

Fri, 20 Feb 2026 US economy slows in final months after turbulent year

Overall the economy grew 2.2% last year, holding up despite pressures from changes to tariff and immigration policy.

* US economy grew at an annual pace of 1.4% in Q4, down from 4.4% in prior quarter
* Overall growth rate was 2.2% for 2025, better than expected despite various pressures
* Consumer spending cooled to 2.4%, down from 3.5% in previous quarter
* Government spending plummeted by over 16%
* Trade deficit widened in December, with imports recovering after a slowdown
* Inflation rose to 2.9% in December, according to the PCE price index
* Fed officials may be cautious about interest rates due to rising inflation figure
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