NEWS / Economy

U.S. Fourth-Quarter GDP Growth Falls Short at 1.4%

Published Feb 20, 2026

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Summary:

The U.S. GDP increased by just 1.4% in the fourth quarter, missing the estimated 2.5% growth.

The core personal consumption expenditures price index rose by 3% year-over-year in December.

This 1.4% growth rate indicates a slowdown in economic activity compared to previous quarters.

Fourth-Quarter GDP Performance

The U.S. economy's performance in the fourth quarter showed a modest increase in gross domestic product (GDP) of just 1.4%.

This figure fell significantly short of the anticipated 2.5% annualized growth rate. The lower than expected GDP growth raises concerns about the overall strength of the economy during this period.

Inflation Trends in December

In addition to the GDP figures, the core personal consumption expenditures (PCE) price index experienced a year-over-year increase of 3% in December.

This aligns with the expectations set by the Dow Jones consensus, indicating that inflationary pressures remain in the economy.

Implications of Slower Growth

The 1.4% GDP growth rate for the fourth quarter reflects a slowdown in economic activity relative to previous quarters.

This trend may lead to concerns among investors and policymakers regarding the sustainability of economic growth moving forward.

What This Means for the Future

As the economy continues to grapple with these lower growth figures and persistent inflation, it will be important for stakeholders to monitor how these factors influence economic policies and market conditions in the coming months.

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