The U.S. economy was in worse shape in the weeks before the U.S. and Israel launched strikes against Iran than earlier government estimates had suggested.

GDP grew at an annualized rate of 1.4% in the fourth quarter, down from 4.4% in the third quarter. The report was originally scheduled for Jan. 29, but was released at 8:30 a.m. ET Friday because of government shutdown-related delays.

President Trump said he had envisioned a growing economy and improving fortunes for American families in 2026. That appears at risk in his war with Iran.

GDP grew at a sluggish 0.7% pace in the final months of 2025 as the government shutdown hurt economic activity.

The U.S. economy, hobbled by last fall's 43-day government shutdown, advanced at a sluggish 0.7% annual rate from October through December, the Commerce Department reported Friday in a big downgrade o

The report also underscores an odd aspect of the U.S. economy: It is growing steadily, but without creating many jobs. Growth was a fairly healthy 2.2% in 2025, yet a government report last week showed that employers added less than 200,000 jobs last year — the fewest since COVID struck in 2020.

The U.S. economy grew at a faster pace than expected in the third quarter, according to the Commerce Department's estimate. The Bureau of Economic Analysis (BEA) on Thursday released its final reading of third quarter GDP, which showed the economy grew ...

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