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US GDP Growth Revised Downward To 0.7% In Q4, Fed’s Favorite Inflation Gauge Ticks Higher

Posted March 13, 2026 at 9:45 am

Piero Cingari
Benzinga

U.S. economic growth slowed sharply toward the end of 2025. Gross domestic product expanded at an annualized rate of 0.7% in the fourth quarter of 2025, according to the second estimate released Friday by the Bureau of Economic Analysis.

The reading was significantly revised down from the initial 1.4% estimate and marked a sharp deceleration from the 4.4% growth pace recorded in the third quarter.

Separate data showed mixed inflation readings at the start of the new year. The Personal Consumption Expenditures (PCE) price index rose 2.8% year over year in January, down from 2.9% in December and below expectations for an unchanged reading.

Core PCE, which excludes food and energy and serves as the Federal Reserve’s preferred inflation gauge, climbed to 3.1%, accelerating from 3.0% previously and matching forecasts.

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Originally Posted on March 13, 2026 – US GDP Growth Revised Downward To 0.7% In Q4, Fed’s Favorite Inflation Gauge Ticks Higher

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