Investment Continues to Drive Economy
May 1, 2026
The first estimate of gross domestic product for the fourth quarter of 2025 showed the U.S. economy growing at a 1.4% real annualized rate. The rate of change was driven by declines in government spending and exports, coupled with a deceleration of consumer spending, according to the data published by the Bureau of Economic Analysis. PCE inflation, the Federal Reserve's favored measure, increased to 2.9% in the fourth quarter. Excluding food and energy, PCE inflation declined modestly to 2.7%. Total growth in 2025 was 2.2%, down from the 2.8% growth in 2024.
"Business investment in equipment was the sole source of growth in the fourth quarter," said Christopher Chidzik, Principal Economist of AMT-The Association For Manufacturing Technology. "Investment in AI infrastructure played a role, along with the record level of manufacturing technology ordered in the closing months of 2025. Slowing consumption of durable goods could be a troubling sign for the manufacturing industry; however, this could also be a temporary response to resurgent inflation."
For more information contact:
AMT
7901 Jones Branch Drive, Suite 900
McLean, VA 22102-4206
703-893-2900 / 800-524-0475
amt@amtonline.org
www.amtonline.org
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