Over all of 2025, the economy expanded by 2.2 percent.

The New York Fed study found that nearly 90% of the economic burden from tariffs was borne by U.S. companies and consumers last year.

The increase in factory production reflects rebounds in output of both business and construction supplies, adds to signs of a recovery in manufacturing.

The core CPI rose from a year ago by the least since 2021, and traders boosted bets that the Federal Reserve will cut interest rates three times this year.