US EditionU.S. economy shrank 0.5% between January and March, worse than earlier estimates revealed
UNITED STATES, JUN 26 – The 0.5% GDP decline reflects a 37.9% surge in imports that subtracted 4.7 percentage points from growth and slower consumer spending at 0.5%, Commerce Department data shows.
- The U.S. economy contracted 0.5% in Q1, marking its first decline in three years and a downgrade from previous estimates, driven by import surges and consumer spending slowdown.
- Following the revised GDP data, imports surged 37.9%, the fastest since 2020, as U.S. companies rushed to stockpile goods before President Trump’s tariffs, reducing GDP by 4.7%.
- Specifically, consumer spending increased 0.5%, government spending dropped 4.6%, and underlying strength rose 1.9%, reflecting mixed GDP components during the downturn.
- This marks the first negative GDP since Q1 2022, with consumer confidence falling to 93 and fueling recession fears.
- The US economy contracted by 0.5% in Q1, mainly due to a 37.9% import surge driven by tariffs, but forecasters expect a 3% rebound in Q2 before July 30 data.
136 Articles
136 Articles
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US Economy Shrank 0.5 Percent in First Quarter on Tariff-Linked Import Spike, Sluggish Spending
The U.S. economy contracted at an annual rate of 0.5 percent in the first quarter of the year, according to the Department of Commerce, whose third and final estimate of gross domestic product (GDP) for the January–March period marked a further downgrade from its two earlier readings. The decline in economic activity was largely driven by a surge in imports—which subtract from GDP calculations—a reduction in government spending, and a slowdown i…
US economy contracts for first time in three years, as tariff disruption dents consumer sentiment, shakes economic foundation
The US economy posted its first contraction in three years, data from US Bureau of Economic Analysis (BEA) showed on Thursday (US time). Chinese and foreign experts said the latest data is a further indication of the damage of the tariffs imposed by the US administration that has on the US economy, as tariffs dented consumer sentiment – a core foundation of the US’ consumption-led economy.
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The US economy is shaken. Falling exports are mentioned as a partial reason. Can US President Trump be held accountable for this?
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