U.S. Growth Slows to 1.4% in Q4, With Shutdown Cited as Major Drag

Commerce’s advance reading attributes roughly a one‑point hit to the 43‑day stoppage, with core inflation near 3% clouding the policy path.

Overview

The Commerce Department’s advance estimate shows real GDP expanding at a 1.4% annual rate in the fourth quarter, down sharply from 4.4% in the prior quarter.
Officials estimate the 43‑day federal shutdown shaved about one percentage point from growth, with some lost output likely to be recouped in later data.
Household spending on goods cooled late in the year, even as real final sales to private domestic purchasers rose at a 2.4% pace.
Core prices excluding food and energy increased at a 3% annual rate in December, remaining above the Federal Reserve’s 2% target.
President Trump blamed Democrats and Fed Chair Jerome Powell for the softer reading, while the White House highlighted private‑sector resilience and pointed to the shutdown’s drag.