Data Shows U.S Weaker Growth, Drop in Income Pre-Iran War
Last update: April 9, 2026
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U.S. jobless data claims for the week ending April 4 rose 16,000 to 219,000...
Government data released Thursday painted a picture of the US economy prior to the Middle East war.
The data downgraded fourth-quarter growth and showed an unexpected decline in US personal income in February.
Most of the report cover the period before the US-Israeli war on Iran that began on February 28. The conflict has led to a surge in crude prices that is straining consumers, pressuring President Donald Trump's administration and dimming the odds for Federal Reserve interest rate cuts.
Analysts say Friday's consumer price index figures for March will reveal more of the war's effects.
US economic growth in the fourth quarter of 2025 came in at 0.5 percent, down from an estimate of 0.7 percent, according to Commerce Department data.
The report puts GDP for all of 2025 at 2.1 percent.
The Commerce Department figures showed at Personal income dropped by 0.1 percent in February from January,
The estimate for personal consumption expenditures, the Fed's preferred benchmark for measuring inflation, climbed 0.5 percent from the prior month, in line with expectations.
From the same month a year ago, the PCE price index rose 2.8 percent. That's the same level as in the year-over-year January comparison.
Excluding food and energy components, inflation rose 3.0 percent from a year ago, down from 3.1 percent last month.
