U.S. economic growth didn’t hit the Trump administration’s 2018 target of 3% or better after all, according to revised government data showing a slower pace of expansion in the final quarter than previously estimated.

Gross domestic product, a broad measure of the goods and services produced, was up 2.5% in the fourth quarter of 2018 from a year earlier, the Commerce Department reported Friday. That was down sharply from its most recent estimate of 3%, and was largely due to lower business investment and exports than previously...