Scott Horsley

Part of that downshift was caused by the six-week government shutdown, much of which will be made up over time.

consumer spending and business investment continue to fuel the economy, although consumer spending grew more slowly during the holiday shopping season than it did earlier in the year.

Consumer prices in December were up 2.9 percent from a year ago, according to the Commerce Department's inflation yardstick, which is closely watched by the Federal Reserve.

Stripping out volatile food and energy prices, core inflation was 3 percent.

Scott Horsley, NPR News, Washington.

The U.S.

trade gap widened sharply in December, topping $70 billion.

Exports were down during the month, while imports were up.

For all of 2025, the trade deficit was just over $900 billion.

That's down from the previous year, but only by about two-tenths of one percent.

New applications for unemployment benefits dipped last week, as 206,000 people applied for aid.

The modest numbers suggest that while U.S.

employers are not adding a lot of jobs, they're not laying a lot of people off either.

Walmart reported another strong quarter of sales and profits as even upscale shoppers go looking for discounts.

The retail giant issued a cautious forecast, though, about what's ahead.

Scott Horsley, NPR News, Washington.

The U.S.

trade gap widened sharply in December, topping $70 billion.

Exports were down during the month while imports were up.

For all of 2025, the trade deficit was just over $900 billion.