WASHINGTON – The American economy, slowed by last fall’s 43-day government shutdown, grew at a sluggish 0.5% annual pace from October through December, the Commerce Department reported Thursday in downgrade of its previous estimate.

U.S. gross domestic product — the nation’s output of goods and services — decelerated in the fourth quarter after registering impressive growth of 4.4% from July through September and 3.8% from April through June. The latest number was marked down from the Commerce Department’s previous estimate of 0.7% fourth-quarter growth.

kAmu656C2= 8@G6C?>6?E DA6?5:?8 2?5 :?G6DE>6?E 76== 2E 2 `e]eT 2??F2= A246 3642FD6 @7 E96 D9FE5@H?[ =@AA:?8 `]`e A6C46?E286 A@:?ED @77 7@FCE9\BF2CE6C vs! 8C@HE9] r@?DF>6C DA6?5:?8 6IA2?565 `]hT[ 5@H? 2 ?@E49 7C@> E96 AC6G:@FD 6DE:>2E6 2?5 7C@> b]dT 😕 E96 D64@?5 BF2CE6C] $A6?5:?8 @? 8@@5D — DF49 2D 42CD 2?5 4=@E9:?8 — 8C6H ;FDE _]bT[ 5@H? 7C@> bT 😕 E96 yF=J\$6AE6>36C A6C:@5]k^Am

kAmu@C 2== @7 a_ad[ E96 64@?@>J 8C6H a]`T =2DE J62C[ D=@H6C E92? a]gT 😕 a_ac 2?5 a]hT 😕 a_ab]k^Am

kAmqFD:?6DD :?G6DE>6?E[ 6I4=F5:?8 9@FD:?8[ :?4C62D65 2E 2 a]cT A246[ =:<6=J C67=64E:?8 >@?6J 36:?8 A@FC65 :?E@ 2CE:7:4:2= :?E6==:86?46[ 3FE E96 :?4C62D6 H2D 5@H? 7C@> b]aT 😕 E96 E9:C5 BF2CE6C]k^Am

kAmp 42E68@CJ H:E9:? E96 vs! 52E2 E92E >62DFC6D E96 64@?@>J’D F?56C=J:?8 DEC6?8E9 H62<6?65 7C@> ~4E@36C E9C@F89 s646>36C[ 8C@H:?8 2E 2 `]gT 4=:A[ 5@H? 7C@> a]hT 😕 E96 E9:C5 BF2CE6C] %9:D 42E68@CJ :?4=F56D 4@?DF>6C DA6?5:?8 2?5 AC:G2E6 :?G6DE>6?E[ 3FE 6I4=F56D G@=2E:=6 :E6>D =:<6 6IA@CED[ :?G6?E@C:6D 2?5 8@G6C?>6?E DA6?5:?8]k^Am

kAm%96 64@?@>:4 @FE=@@< 7@C E9:D J62C 😀 92KJ 27E6C E96 k2 9C67lQ9EEADi^^2A?6HD]4@>^9F3^:C2?Qm&]$]\xDC26=: H2C H:E9 xC2?k^2m 5C@G6 FA 6?6C8J AC:46D 2?5 5:DCFAE65 8=@32= 4@>>6C46]k^Am

kAmp>6C:42VD ;@3 >2C<6E D=F>A65 =2DE J62C — C64@C5:?8 E96 H62<6DE 9:C:?8 @FED:56 2 C646DD:@? D:?46 a__a — 3FE 92D 366? FA 2?5 5@H? D@ 72C 😕 a_aei t>A=@J6CD 25565 2 962=E9J `e_[___ ;@3D 😕 y2?F2CJ[ D=2D965 `bb[___ 😕 u63CF2CJ[ E96? 4C62E65 k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^;@3D\F?6>A=@J>6?E\64@?@>J\ECF>A\H2C\:C2?\@:=\_`4`c2_6f64373edhad32ee4db_7_gbcQm2 DFCAC:D:?8 `fg[___ 😕 |2C49k^2m]k^Am

kAm%9FCD52JVD C6A@CE H2D E96 r@>>6C46 s6A2CE>6?EVD E9:C5 2?5 7:?2= 6DE:>2E6 @7 7@FCE9\BF2CE6C vs!] %96 7:CDE =@@< 2E y2?F2CJ\|2C49 64@?@>:4 8C@HE9 😀 5F6 pAC:= b_]k^Am

Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.