Economic growth contracted during the first quarter of 2025, falling 0.3% after rising 2.4% during the fourth quarter of 2024, according to CNBC. Economists had been expecting growth of 0.4%.
A 41.3% surge in imports—which subtract from the gross domestic product—ahead of President Trump’s tariffs reportedly contributed to the decline in the first quarter. Other contributors included a slowdown in consumer spending and a sharp decrease in federal government spending.
Consumer spending rose 1.8% during the first quarter, which is down from a 4% increase in the fourth quarter of 2024. Federal government spending fell 5.1%.
Gross private domestic investment surged 21.9%, largely driven by a 22.5% increase in equipment spending.
