The U.S. economy lost momentum at the end of 2025, with gross domestic product expanding at a 1.4% annual rate in the fourth quarter, down sharply from 4.4% in the prior quarter, The New York Times writes.
The slowdown was driven in part by the longest government shutdown in history, which temporarily sidelined hundreds of thousands of federal workers and shaved roughly a percentage point off growth.
Even so, the broader picture remains resilient. For the full year, GDP grew 2.2%, only slightly below 2024’s pace. Consumer spending, particularly among wealthier households, and a surge in artificial intelligence-related investment helped offset weakness in housing, factory construction and trade-sensitive industries.
Business investment tied to AI infrastructure, including data centers and power demand, has become a central growth engine. With tax cuts and rate reductions in place, many forecasters expect growth to reaccelerate in 2026—provided policy uncertainty eases.
The New York Times has the full story.
