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U.S. Economy Growth Slashed to 0.7% Amid Shutdown

3/14/2026

50 5 Full Breakdown

Summary

Story summary

The U.S. economy's fourth-quarter 2025 growth was revised down to 0.7% from 1.4%.
The revision cites a historic government shutdown that reduced government spending by 16.7%.
The full-year 2025 growth is now 2.1%, down from 2.2%.
Consumer spending rose 2% as health care services declined.
The final GDP report will be released in April.

History

Historical Context

The 2013 U.S. government shutdown, lasting from October 1 to 17, resulted from a budget impasse over the Affordable Care Act, affecting approximately 800,000 federal employees. This 16-day closure cost the economy an estimated $24 billion, highlighting the detrimental effects of political gridlock on economic stability. The shutdown's legacy continues to influence fiscal policy discussions and concerns about future government operations.

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Story summary

The U.S. economy's fourth-quarter 2025 growth was revised down to 0.7% from 1.4%.
The revision cites a historic government shutdown that reduced government spending by 16.7%.
The full-year 2025 growth is now 2.1%, down from 2.2%.
Consumer spending rose 2% as health care services declined.
The final GDP report will be released in April.

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