The US economy grew at an unrevised 2.3% annualized pace last quarter, on par with consensus estimates.
The Bureau of Economic Analysis’s (BEA) second estimate of fourth quarter US gross domestic product (GDP) was unchanged from the advanced estimate, which had shown 2.3% annualized growth.
The second estimate, based on more complete source data than the advanced estimate, suggests that economic growth in the fourth quarter was slower than the 3.1% annualized growth seen in the third quarter.
The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment, according to the BEA.
A third and final estimate for Q4 GDP growth will be released at the end of March.
The growth update comes on the heels of greater concerns that President Trump’s tariff plans will hurt the US economy and lead to slower growth and higher inflation over time.
According to data released earlier this week, consumer confidence plummeted in February, notching its biggest monthly decline in nearly four years as 12-month inflation expectations jumped and recession fears escalated.
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The latest consumer sentiment data also highlighted fears around tariffs and the impact that those and other Trump 2.0 policies, like immigration curbs and DOGE layoffs, could have on the broader economy.
“The immediate policy changes from the new administration (immigration enforcement and tariffs) are likely to weigh on growth while providing little relief on inflation,” Morgan Stanley analyst Mike Wilson wrote in a note to clients on Monday.
Wednesday’s GDP reading is considered backward-looking, given that it provides an update on economic growth for the quarter that ended in December.
Projections show the economy growing at a steady pace in the current quarter, which ends in March. The Atlanta Fed GDPNow tracker currently projects the US economy is pacing for annualized growth of 2.3%.
Separately, data from the US Labor Department released Thursday showed 242,000 unemployment claims were filed in the week ending Feb. 22, ahead of Wall Street’s expectations for 221,000 and an increase of 22,000 from the previous week’s revised level. This marked the highest level of filed claims since December.
There was also a notable increase in D.C. jobless claims, with 2,047 claims filed last week versus 1,626 in the prior-week period. Overall, though, federal jobless claims did not show any obvious impact from DOGE-related layoffs, though economists warned the timing is still early.