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The US economy grew at an annualised rate of just 0.7 per cent in the fourth quarter of 2025, according to revised figures that show exports, consumer spending and investment were lower than previously thought.

Friday’s figure from the Bureau of Economic Analysis was revised down sharply from the 1.4 per cent initial estimate released last month and is well below the previous quarter’s 4.4 per cent growth rate.

The revision suggests the world’s biggest economy ended 2025 in far weaker shape than economists had previously thought amid growing questions over whether resilience in consumer spending and business investment will persist.

The BEA said intellectual property charges contributed to the revision in the exports figure. Consumer spending on services, particularly in healthcare, was lower than initially reported. Business investment in manufacturing was weaker than initial estimates suggested.

The revision will be a blow to President Donald Trump, who told world leaders at Davos in January that US growth was “exploding”. The Atlanta Federal Reserve had forecast growth would be as much as 5.4 per cent during the period, before reducing its estimates.

The bank’s GDPNow forecast for first-quarter 2026 growth currently sits at 2.7 per cent.

This is a developing story