Economy grew by just 0.7% in Fourth quarter
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The PCE price index for January was expected to show headline inflation at 2.9% and core at 3.1%.
The U.S. gross domestic product rose at a inflation-adjusted rate of 0.7% in the fourth quarter of 2025, the Commerce Department reported Friday.
The Bureau of Economic Analysis dramatically lowered its estimate for economic growth in the fourth quarter, with slower consumer spending and the record-long government shutdown playing big roles in the revision.
Treasury yields were lower Friday after fourth-quarter gross domestic product was revised down to an annual rate of 0.7%.
Real GDP rose at just a 0.7% annual rate, falling well short of the 1.4% forecast and marking a steep drop-off from the 4.4% final estimate seen in Q3.
The core PCE price index was expected to increase 3% from a year ago in December. GDP was projected to rise at a 2.5% pace in Q4.