The Q1 2025 decrease primarily reflected an increase in imports, which are a subtraction in the calculation of GDP; a decrease in government spending; and a deceleration in consumer spending.
Real US GDP decreased at an annual rate of 0.3 per cent in Q1 2025, according to the advance estimate released by the Bureau of Economic Analysis.
In Q4 2024, real GDP increased by 2.4 per cent.
The Q1 2025 decrease primarily reflected an increase in imports, which are a subtraction in the calculation of GDP; a decrease in government spending; and a deceleration in consumer spending.
These movements were partly offset by increases in investment, consumer spending and exports, a BEA release said.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased by 3 per cent in Q1 2025 compared with an increase of 2.9 per cent in Q4 2024.
The price index for gross domestic purchases increased by 3.4 per cent in Q1 2025 compared with an increase of 2.2 per cent in Q4 2024.
The personal consumption expenditures (PCE) price index increased by 3.6 per cent (3.5 per cent excluding food and energy prices) in Q1 2025 compared with an increase of 2.4 per cent (2.6 per cent) in Q4 2024.
Excluding food and energy prices, the PCE price index increased by 3.5 per cent compared with an increase of 2.6 per cent in Q4 2025.
Fibre2Fashion News Desk (DS)
