US Q4 GDP Growth Slows to 1.4%, Falls Short of 2.8% Estimate
US Q4 GDP growth registered 1.4% quarter-over-quarter, falling significantly short of the 2.8% market estimate and marking a sharp deceleration from the previous quarter's 4.4% growth rate. The substantial gap between actual performance and forecasts indicates a notable economic slowdown during the fourth quarter.
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The United States economy experienced a significant deceleration in the fourth quarter, with GDP growth falling well below market expectations and marking a sharp decline from the previous quarter's performance.
Q4 GDP Performance Overview
The latest economic data reveals a substantial slowdown in US economic growth during the fourth quarter. The actual GDP growth rate came in at 1.4% on a quarter-over-quarter basis, representing a considerable miss compared to analyst expectations.
| Metric | Q4 Actual | Market Estimate | Previous Quarter |
|---|---|---|---|
| GDP Growth (QoQ) | 1.4% | 2.8% | 4.4% |
Economic Growth Deceleration
The fourth quarter results demonstrate a marked cooling of economic activity compared to the previous quarter's robust performance. The economy grew at 4.4% in the prior quarter, making the Q4 slowdown particularly pronounced with growth dropping by 3.0 percentage points.
Market Expectations vs Reality
Economists had projected GDP growth of 2.8% for the fourth quarter, but the actual figure of 1.4% fell short by 1.4 percentage points. This significant variance between expectations and actual performance indicates that economic headwinds may have been more substantial than initially anticipated during the quarter.
The substantial deceleration from 4.4% to 1.4% quarter-over-quarter represents one of the most notable shifts in recent economic performance, highlighting the volatility in growth patterns and the challenges in maintaining consistent economic momentum.
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