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US GDP expands at annual rate of 0.5% in Q4 vs 0.7% expected

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The United States’ (US) real Gross Domestic Product (GDP) expanded at an annual rate of 0.5% in the fourth quarter of 2025, the US Bureau of Economic Analysis’ (BEA) third estimate showed on Thursday. This print followed the 0.7% growth announced in the previous estimate and came in below the market’s expectation of 0.7%.

“Real GDP was revised down 0.2 percentage point from the second estimate, primarily reflecting a downward revision to investment,” the BEA explained in its press release.

“The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment. These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased,” the BEA further noted.

Market reaction

The US Dollar (USD) Index showed no immediate reaction to this report and was last seen fluctuating near Wednesday’s closing level of 99.00.

Source: https://www.fxstreet.com/news/us-gdp-expands-at-annual-rate-of-05-in-q4-vs-07-expected-202604091240

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