US economy grew 0.5% in fourth quarter, government revises estimate

The US economy grew at a sluggish 0.5% in the fourth quarter, a downgrade from previous estimates, impacted by the government shutdown. Federal government spending and investment fell significantly due to the shutdown, while consumer spending and business investment also showed slower growth compared to earlier quarters. Overall economic growth for 2025 was 2.1%, a slowdown from previous years, with the outlook for the current year uncertain due to global events.