🇺🇸 US Economy Contracts More Than Expected 🇺🇸
New data shows the US economy shrank faster than previously reported in the first quarter of 2025. According to revised figures from the Commerce Department, GDP contracted by 0.5% on an annualized basis, down from the earlier estimate and worse than the 0.2% contraction economists expected.
The sharper decline was driven mainly by weaker consumer spending, especially in recreation and transportation. Another key factor was a surge in imports ahead of President Trump’s tariffs, which weighed on GDP since imports are subtracted from the calculation.
The revision raises fresh concerns about consumer resilience and short-term economic momentum as trade and spending pressures continue to build.