Let's break down the GDP numbers to see what had happened.
GDP growth = G + I + C + NE
Q3 GDP (Final estimate) = 0.38 + 0.03 + 2.34 + 1.62 = 4.37 (4.4)
Q4 GDP (1st estimate) = (-0.9) + 0.66 + 1.58 + 0.08 = 1.42 (1.4)
The US Q4 (2025) GDP had a significant decline because 3 components dropped significantly. The Government Spending (G), Consumption (C) and Net Export (NE) declined whilst the Investment (I) increased. The increase in (I) could be due to inventories accumulation as the (C) had dropped. This GDP report had clearly corroborated the recent 2 reports that indicated a weakening in US consumption.
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