US economy grew just 0.7% in Q4, GDP shows Newspoint  |  2026-03-13T22:40:29+08:00
Weaker exports and increased inflation

The smaller number mostly comes from weaker exports, weaker-than-expected consumer spending (though consumer spending still grew) and decreased government spending, and investment that was weaker than previously estimated (but still increased).
Imports did not drop as much as expected either. Plus, inflation ticked up: prices for everyday stuff (the PCE index) rose by about 2.9%.

Consumer spending and government shutdown effects

Basically, consumer spending was weaker than previously estimated (but still increased) and inflation remains (the PCE price index rose about 2.9%);
the recent government shutdown had specific effects on federal compensation accounting and price-data collection, which could shape how things feel through 2026.
If you are watching your wallet or thinking about jobs, these trends are worth keeping an eye on as we move through 2026.

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