New data released today indicates the U.S. economy contracted in the first quarter of 2025, raising concerns about a possible recession. The gross domestic product (GDP), a key measure of economic output, showed a decrease, signaling a slowdown in economic activity.
Economists are analyzing the factors contributing to this decline. These may include decreased consumer spending, supply chain issues, and rising interest rates. The next quarter's GDP data will be crucial in determining whether the economy is heading towards a recession, which is typically defined as two consecutive quarters of negative GDP growth.
CBS MoneyWatch correspondent Kelly O'Grady reports that the situation warrants close monitoring. While one quarter of negative growth doesn't automatically mean a recession, it does raise a red flag. Businesses and consumers alike are urged to remain cautious as the economic outlook remains uncertain.
US Economy Slows in Q1, Recession Fears Rise
New data reveals the U.S. economy shrank in the first quarter of 2025. This slowdown has sparked concerns about a potential recession. Experts are closely watching upcoming economic reports to see if the trend continues. Several factors are believed to be contributing to the economic downturn.
Source: Read the original article at CBS