US GDP Sees First Decline Since 2022
The US economy contracted at an annualized rate of 0.2% in the first quarter of 2025, following a 2.4% expansion in the previous quarter and marking the first decline since Q1 2022, according to the second estimate.
This compares with an initial estimate of a 0.3% contraction. Imports surged by 42.6% as businesses and consumers rushed to stockpile goods ahead of anticipated cost increases driven by a series of tariff announcements from the Trump administration.
Meanwhile, consumer spending growth slowed to 1.2%, the weakest since Q2 2023, and federal government expenditures fell 4.6%, the sharpest drop since Q1 2022. In contrast, fixed investment jumped 7.8%, the strongest increase since mid-2023, and exports rose 2.4%.
Source: Trading Economics