FX.co ★ U.S. GDP Growth Cools Sharply to 0.7% in Q4 2025, Down from 4.4% in Prior Quarter

U.S. economic growth slowed markedly in the fourth quarter of 2025, with gross domestic product (GDP) rising just 0.7% quarter-over-quarter, according to data updated on 13 March 2026. This is a steep deceleration from the previous quarter’s robust 4.4% quarter-over-quarter expansion recorded in the third-to-fourth quarter comparison.

The figures highlight a pronounced loss of momentum at the end of 2025. While the earlier 4.4% reading signaled strong activity relative to the prior quarter, the latest 0.7% outcome indicates that the pace of expansion has cooled significantly. The data are presented on a quarter-over-quarter basis, meaning the current 0.7% reading reflects the change from the previous quarter, while the 4.4% figure measured the change in that earlier quarter versus the one before it.

The sharp slowdown between the two readings will likely sharpen investor and policymaker focus on how durable U.S. growth will be heading into 2026, as markets reassess expectations shaped by the much stronger performance earlier in the year.