U.S. economy shrank at 0.5% rate in the first quarter

Photo credit: Reuters

Investing.com - U.S. gross domestic product shrank by an annualized 0.5% in the first quarter, according to a final revision of the data on Thursday which confirmed the first contraction since 2022 and suggested possible headwinds from sweeping U.S. tariffs.

In the prior revised figure released in May, January-to-March GDP contracted by 0.2%, marking a reversal from growth of 2.4% in the final three months of 2024.

A flood of imports, kick-started by businesses looking to lock in orders and avert higher costs before the implementation of U.S. President Donald Trump’s aggressive trade agenda, weighed on the number. According to the Commerce Department’s Bureau of Economic Analysis, which releases the data, imports are a substraction in the calculation of GDP.

By Scott Kanowsky

Full story at Investing