New data reveals that the U.S. economy contracted in the first quarter of 2025. The Gross Domestic Product (GDP), a key measure of economic output, decreased by 0.3% during the period from January to March. This represents a notable decline compared to the growth experienced throughout 2024.
Several factors contributed to this economic downturn. Consumer spending, a major driver of the U.S. economy, saw a decrease. In addition, exports declined, further impacting the GDP figures. Experts are analyzing the data to determine the underlying causes and potential implications for future economic performance.
The slowdown raises concerns about the overall health of the U.S. economy. While some economists believe this may be a temporary setback, others are watching closely for signs of a more prolonged period of contraction. The coming months will be crucial in determining the trajectory of the economy and the effectiveness of any policy responses.
US Economy Contracts in Q1 2025, GDP Shows
The U.S. economy experienced a slowdown in the first quarter of 2025, with the Gross Domestic Product (GDP) shrinking by 0.3%. This marks a significant shift from the growth observed in 2024. Several factors contributed to the economic downturn, including decreased consumer spending and a drop in exports. Economists are closely monitoring the situation to assess the potential for a continued slowdown or a rebound in the coming months.
Source: Read the original article at CBS