US economy grows 0.5% in Q4 2025, inflation above 2%
Business
The US economy grew by just 0.5% in the last quarter of 2025, falling short of predictions and slowing down compared to earlier in the year.
Inflation is still sticking above the Federal Reserve's 2% goal, making things a bit tricky for policymakers.
Consumer spending rose 1.9% below expectations
A big reason for this dip is that consumer spending grew more slowly, rising 1.9%: consumer spending only went up by 1.9%, which is below what experts expected.
Prices are still rising, though not as fast, with inflation numbers holding steady but staying higher than what the Fed wants.
Cooling demand and still-tight financial conditions, but that also means borrowing and spending have gotten tougher for everyone.