U.S. economy shrank 0.3% in the first quarter as Trump policy uncertainty weighed on businesses [View all]
Source: CNBC
Published Wed, Apr 30 2025 8:30 AM EDT Updated 2 Min Ago
The U.S. economy contracted in the first three months of 2025 on an import surge at the start of President Donald Trump’s second term in office as he wages a potentially costly trade war.
Gross domestic product, a sum of all the goods and services produced from January through March, fell at a 0.3% annualized pace, according to a Commerce Department report Wednesday adjusted for seasonal factors and inflation. This was the first quarter of negative growth since Q1 of 2022.
Economists surveyed by Dow Jones had been looking for a gain of 0.4% after GDP rose by 2.4% in the fourth quarter of 2024. However, over the past day or so some Wall Street economists changed their outlook to negative growth, largely because of an unexpected rise in imports as companies and consumers sought to get ahead of the Trump tariffs implemented in early April.
Indeed, imports soared 41.3% for the quarter, driven by a 50.9% increase in goods. Imports subtract from GDP, so the contraction in growth may not be viewed as negatively given the potential for the trend to reverse in subsequent quarters. Imports took more than 5 percentage points off the headline reading. Exports rose 1.8%.
Read more: https://www.cnbc.com/2025/04/30/gdp-q1-2025-.html
From the source -
Link to tweet
@BEA_News
·
Follow
The U.S. economy shrank at a 0.3% annualized rate in Q1.
https://bea.gov/data/gdp/gross-domestic-product
#GDP
8:30 AM · Apr 30, 2025
Article updated.
Original article -
The U.S. economy contracted in the first three months of 2025, fueling recession fears at the start of President Donald Trump's second term in office as he wages a potentially costly trade war.
Gross domestic product, a sum of all the goods and services produced from January through March, fell at a 0.3% annualized pace, according to a Commerce Department report Wednesday adjusted for seasonal factors and inflation.
Economists surveyed by Dow Jones had been looking for a gain of 0.4% after GDP rose by 2.4% in the fourth quarter of 2024. However, over the past day or so some Wall Street economists changed their outlook to negative growth, largely due to an unexpected rise in imports as companies and consumers sought to get ahead of the Trump tariffs implemented in early April.
Indeed, imports soared 41.3% for the quarter, driven by a 50.9% increase in goods. Imports subtract from GDP, so the contraction in growth may not be viewed as negatively given the potential for the trend to reverse in subsequent quarters. Imports took more than 5 percentage points off the headline reading.
= new reply since forum marked as read