Fourth-quarter GDP revised down to just 0.7% growth

• Fourth-quarter GDP was revised down to 0.7% growth, significantly below the initial estimate of 1.4% and the 1.5% expectation, marking the weakest growth since Q1 2025.
• Consumption growth for Q4 was revised down from 2.4% to 2.0%.
• The GDP price index for Q4 came in at 3.8%, 0.2 percentage points higher than both previous readings and expectations, suggesting hotter inflation.
• Treasury yields reacted with the 10-year yield down 11 basis points on the week, and the 2-year yield up 14 basis points on the week.

The video reports on the second reading of fourth-quarter GDP, which was revised significantly lower to just 0.7% growth, half of the initial estimate. Consumption growth also slowed, while the GDP price index came in hotter than expected, indicating persistent inflation. Treasury yields showed mixed movements following the data.