GDP Data Indicate Economic Slowdown in Q1

WASHINGTON–Real gross domestic product (GDP) decreased at an annual rate of 0.2% in the first quarter of 2025, according to the second estimate released by the U.S. Bureau of Economic Analysis. 

In the fourth quarter of 2024, real GDP increased 2.4%, according to the BEA.

“The decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending,” the BEA said. “These movements were partly offset by increases in investment, consumer spending, and exports. Real GDP was revised up 0.1%age point from the advance estimate, reflecting an upward revision to investment that was partly offset by a downward revision to consumer spending.”

According to the Bureau, compared to the fourth quarter, the downturn in real GDP in the first quarter primarily reflected an upturn in imports, a deceleration in consumer spending and a downturn in government spending that were partly offset by upturns in investment and exports.

Additional Data Points

Among other data points released by the BEA:

  • Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.5% in the first quarter, revised down 0.5%age point from the previous estimate.
  • The price index for gross domestic purchases increased 3.3% in the first quarter, revised down 0.1%age point from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.6%, the same as previously estimated. Excluding food and energy prices, the PCE price index increased 3.4%, revised down 0.1%age point from the previous estimate.
  • Real gross domestic income (GDI) decreased 0.2% in the first quarter, in contrast to an increase of 5.2% in the fourth quarter.
  • Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $118.1 billion in the first quarter, in contrast to an increase of $204.7 billion in the fourth quarter.
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