US economy grows at 1.4% rate in the fourth quarter, slower than expected

WASHINGTON (AP) — America’s gross domestic product — the nation’s output of goods and services — increased at an 1.4% annual rate in the fourth quarter, the Commerce Department reported Friday (Feb. 20, 2026), down from 4.4% in the July-September quarter and 3.8% in the quarter before that. A downturn in government and consumer spending contributed to the slowdown in fourth-quarter growth, the government said. Consumer spending rose just 2.2%, a significant slowdown from the third quarter’s healthy 3.5% gain. The U.S. economy grew 2.2% in 2025, down from 2024’s 2.8% expansion.