Federal government spending declined at a 16.6% rate in the fourth quarter, shaving nearly 1.2 percentage points off headline GDP. Shutdowns can squeeze the economy in many ways, from missed paychecks for hundreds of thousands of federal employees to government contractors losing out on business.

America’s gross domestic product was dragged down by the six-week shutdown of the federal government and a pullback in consumer spending.

U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending. The nation's gross domestic product — the total output of goods and services — increased at a 1.

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, down from

The US economy grew at an annualised rate of just 1.4 per cent in the fourth quarter, as the longest federal shutdown hit government spending, while a crucial inflation measure crept higher. Friday’s figure from the Bureau of Economic Analysis was sharply down from 4.

Friday’s result, which reflects a huge reduction in government spending and continued trade volatility, compares with real GDP growth of 4.4% during last year’s third quarter.

Q4 U.S. GDP (first estimate): +1.4%, annual rate, vs. +2.8% consensus and +4.4% in the prior quarter. Personal consumption expenditures: +2.4%, annual rate, vs. +2.4% consensus and +3.5% prior.

Economic growth slowed more than expected at the end of last year. US real gross domestic product rose at an annualized rate of 1.4% in the fourth quarter, short of the 2.8% expected. That's also subpar compared to the 4.