US economy slows sharply, shrinking 0.3% in the first quarter, as tariffs weigh

The U.S. economy contracted in the first quarter as President Donald Trump's economic agenda took effect, according to new data released on Wednesday.

The Commerce Department's Bureau of Economic Analysis (BEA) released its advance estimate for first quarter gross domestic product (GDP), which found the U.S. economy contracted at an annual rate of 0.3% in the first quarter, which runs from January through March.

Economists surveyed by LSEG had expected the economy to grow at a 0.3% rate in the quarter. The first quarter's 0.3% contraction was slower than the 2.4% GDP growth recorded in the fourth quarter. The quarterly contraction was the first since the first quarter of 2022.

The decline in GDP was attributed primarily to an increase in imports, which count as a subtraction in the calculation of GDP, as well as a decrease in government spending. Those shifts were partially offset by increases in investment, consumer spending and exports.

Read Full Article Here
 
Container terminal in Hamburg by Dominik Lückmann is licensed under Unsplash unsplash.com

Follow us

Read our latest news on any of these social networks!

Get latest news delivered daily!

We will send you breaking news right to your inbox


Have a tip? Let us know!

Recent Articles

...
Trump says U.S. has 'too many non-working holidays' on Juneteenth

Meanwhile, former President Joe Biden celebrated the federal holiday he signed into law at a celebration at a historic Black church in Galveston, Texas.

...
NYPD investigating alleged bomb threat against Zohran Mamdani

Police in New York City are investigating an alleged car bomb threat against Assemblyman Zohran Mamdani, who is running in the Democratic primary for mayor.

...
Oil prices rise as Israel-Iran conflict heightens fears of supply disruptions

Oil prices jumped in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East.

...
Social Security's insolvency date is now a year earlier. Here's how it could impact your benefits

Social Security is on track to deplete its trust funds by 2034, one year sooner than previously forecast, when the federal retirement program will be required to cut monthly benefits by about 20%.