Key Facts

• The US economy decreased at an annual rate of 0.3% in the first three months of the year.
• This decrease followed a growth of 2.4% in the previous quarter.
• The change was due to a drop in government spending and increased imports.
• Businesses imported more goods to get them into the country before tariffs were imposed.
• Business investment and consumer spending, however, increased during this time.
• Consumer spending grew at a slower pace than in 2024.
• The comprehensive report indicated imports increased by over 40% during the first quarter.
• Despite the economic downturn, final sales to private domestic purchases, a measure of overall demand, stayed relatively stable, showing a 3% growth.