April 9 (UPI) — The U.S. Bureau of Economic Analysis revised the rate of economic growth for the fourth quarter of 2025 down Thursday due largely to slower-than-expected investment.
The annual rate of growth for gross domestic product was revised downward from 0.7% to 0.5% to end 2025. The Commerce Department said the revision primarily reflects a downward revision to investment.
“Within investment, the downward revision was led by private inventory investment, particularly wholesale trade, based on updated U.S. Census Bureau inventory data,” Thursday’s GDP report said.
Thursday’s report is the third estimate of economic growth for the fourth quarter of 2025. It was slated to be published on March 27 but was delayed due to the government shutdown in October and November.
Gains in wholesale trade, information services and healthcare were offset by declines in the federal government and nondurable goods manufacturing. Private service-producing industries tallied a 2.3% gain in real value added to the GDP while the federal government’s contribution decreased by 7.8%.
Thirty-five states posted gains to GDP, led by North Dakota at 3.8%. The District of Columbia, where many federal employees are located, had a decrease of 8.3%.
North Dakota was also one of three states with a decrease in personal incomes, down 4%. Personal incomes also declined in South Dakota by 2% and Iowa by 1.5%.
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