The U.S. economy grew at a slower rate than previously thought in the fourth quarter after the Commerce Department released its first revision of real gross domestic product (GDP) growth for the latest quarter.
The Bureau of Economic Analysis (BEA) released its second estimate of fourth-quarter GDP, which showed the economy grew at a 0.7% rate. That was slower than the 1.4% estimate of economists polled by LSEG, and below the Commerce Department's initial fourth-quarter GDP estimate of 1.4%.
Taken together with the 0.6% GDP contraction in the first quarter of 2025, as well as increases of 3.8% in the second quarter and 4.4% in the third quarter, the U.S. economy grew at an annual rate of about 2.08% in 2025. That figure is subject to change as the BEA will release a final revision to the fourth quarter GDP figure released today as more data comes in.
The BEA noted that the rise in consumer spending and investment boosted real GDP in the fourth quarter, but those gains were partly offset by decreases in exports and government spending. Imports also declined in the quarter.