Overview

• U.S. GDP contracted by 0.2% in the first quarter of 2025, revising an earlier estimate of a 0.3% decline after 2.4% growth in the previous quarter.
• Imports skyrocketed by 42.6%, subtracting almost five percentage points from GDP growth because businesses stocked up ahead of expected tariffs.
• Consumer spending increased at a 1.2% annualized rate, marking the weakest pace since mid-2023.
• Business investment outpaced initial forecasts and partially offset the overall contraction.
• A federal court halted implementation of President Trump’s new tariffs, delaying a clear assessment of their economic effects.