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LetMyPeopleVote

(166,920 posts)
Thu Jun 26, 2025, 09:23 AM Jun 26

The US economy shrank much faster in the first quarter than previously reported

Source: CNN

The US economy contracted in the beginning of the year at a much faster pace than previously reported, after new data factored in much weaker consumer spending.

Gross domestic product, the broadest measure of economic output, registered an annualized rate of -0.5% from January through March, the Commerce Department said Thursday in its third and final estimate. That’s worse than the 0.2% decline reported in the second estimate. GDP is adjusted for seasonal swings and inflation.

The latest estimate showed that consumer spending — the lifeblood of the US economy — was tepid in the beginning of the year. Spending in the first quarter grew at a rate of just 0.5%, down from 1.2% in an earlier estimate. That’s the weakest rate in more than four years....

“Thursday’s GDP is backward looking and stocks already priced in the economic weakness caused by the tariffs during their decline in early April,” Paul Stanley, chief investment officer, Granite Bay Wealth Management, wrote in commentary issued Thursday. “Now, with stocks back at record highs, the market is looking ahead and pricing in an environment where tariffs are lower and that companies will be able to adapt and navigate tariffs.”

Read more: https://www.cnn.com/2025/06/26/economy/us-gdp-q1-final




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OrlandoDem2

(3,045 posts)
2. Yikes. Wow Americans really are closing their wallets! No one wants to spend.
Thu Jun 26, 2025, 09:30 AM
Jun 26

No one can afford to spend. Trump’s tariffs are OBLITERATING this economy.

I personally don’t want to spend my money on anything unnecessary. Spending money is a form of support for this dictatorship. Closing my wallet and sacrificing whenever and wherever possible is my way of protesting.

BumRushDaShow

(157,285 posts)
3. From the source (I can see why the CNBCs of the world kept this hush hush - no million blaring breaking news alerts)
Thu Jun 26, 2025, 09:31 AM
Jun 26



BEA News
@BEA_News
·
Follow
The U.S. economy shrank at a 0.5% annualized rate in Q1, more than the 0.2% rate of decline estimated a month ago.

https://bea.gov/data/gdp/gross-domestic-product


#GDP
8:30 AM · Jun 26, 2025


https://www.bea.gov/data/gdp/gross-domestic-product

Lovie777

(19,463 posts)
4. Cover-up....................
Thu Jun 26, 2025, 09:38 AM
Jun 26

lies and more lies. Deflections, look squirrel!

shithole, cabinet, administration, GQP are getting meaner (if that's possible).

mahatmakanejeeves

(65,891 posts)
5. With all due respect, the announcement came from the Bureau of Economic Analysis.
Thu Jun 26, 2025, 09:41 AM
Jun 26

Last edited Thu Jun 26, 2025, 11:39 AM - Edit history (2)

an agency within the Department of Commerce.

{Not the Bureau of Economic Activity. Thanks, progree. Autocorrect keeps changing "progree" to "progress."}

The economic releases go off as scheduled, usually.

And good morning.

LetMyPeopleVote

(166,920 posts)
11. Consumer spending dropped 0.3% in May, a sign of economic slowdown
Fri Jun 27, 2025, 05:20 PM
Jun 27


The U.S. economy shrank more than expected in the first quarter of 2025, with GDP contracting at an annualized rate of -0.5% and consumer spending grew just 0.5%, its weakest pace in over four years, and job seekers are struggling more to find work.

And instead of simply focusing on lowering prices "on Day One" like he said he would during the campaign, Trump's asinine tariff policy, erratic behavior, and mass firings of patriotic public servants have crushed families and produced uncertainty in the markets, as he destroys at lightning speed the economy Biden rebuilt.

And now he plans to throw millions of Americans off Medicaid and food assistance to add even more pain.


IronLionZion

(49,511 posts)
6. Americans love uncertainty from tariffs, trade wars, government cuts, mass deportations
Thu Jun 26, 2025, 09:46 AM
Jun 26

and generally shitty behavior coming from the white house.

LetMyPeopleVote

(166,920 posts)
7. US economy shrank 0.5% between January and March, worse than earlier estimates showed
Thu Jun 26, 2025, 12:34 PM
Jun 26

The U.S. economy shrank at a 0.5% annual pace from January through March as President Donald Trump’s import taxes at least temporarily disrupted business, the Commerce Department reported Thursday in a a downgrade from its previous estimate

US economy shrank 0.5% between January and March, worse than earlier estimates showed - ABC News abcnews.go.com/Business/wir...

Forever Logical 🇺🇲🇺🇦🐈‍⬛🐈‍⬛🌊 (@foreverlogical.bsky.social) 2025-06-26T14:53:11.460Z



https://abcnews.go.com/Business/wireStory/us-economy-shrank-05-january-march-worse-earlier-123226287?cid=social_twitter_abcn

WASHINGTON -- The U.S. economy shrank at a 0.5% annual pace from January through March as President Donald Trump’s trade wars disrupted business, the Commerce Department reported Thursday in an unexpected deterioration of earlier estimates.

First-quarter growth was weighed down by a surge of imports as U.S. companies, and households, rushed to buy foreign goods before Trump could impose tariffs on them. The Commerce Department previously estimated that the economy fell 0.2% in the first quarter. Economists had forecast no change in the department's third and final estimate.

The January-March drop in gross domestic product — the nation’s output of goods and services — reversed a 2.4% increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9%, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points.

Consumer spending also slowed sharply, expanding just 0.5%, down from a robust 4% in fourth-quarter 2024 and sharp downgrade from the Commerce Department's previous estimate.

A category within the GDP data that measures the economy’s underlying strength rose at a 1.9% annual rate from January through March. It's a decent number, but down from 2.9% in the fourth quarter of 2024 and from the Commerce Department's previous estimate of 2.5% January-March growth.

progree

(12,126 posts)
9. "Consumers have turned jittery since Trump started plastering big taxes on imports,"
Thu Jun 26, 2025, 01:51 PM
Jun 26

I love the choice of words - "PLASTERING BIG TAXES on imports"
by Paul Wiseman, AP
https://finance.yahoo.com/news/u-economy-shrank-0-5-124015790.html

well-deserved last name

LetMyPeopleVote

(166,920 posts)
13. Deep inside U.S. economy, more sticker prices start going up due to tariffs, and inventory is headed down
Sat Jun 28, 2025, 04:18 PM
Jun 28

trump's stupid tariffs are killing the US economy

https://www.cnbc.com/2025/06/27/deep-inside-economy-more-sticker-prices-start-to-go-up-due-to-tariffs.html

On the surface of the U.S. economy, prices are higher. The latest inflation data out on Friday from the government showed a bigger uptick than forecast. On Thursday, Nike said it took a $1 billion hit due to tariffs and the fact that price increases have yet to be implemented.

Inside the U.S. economy, within distribution networks that manage inventory, there are fewer items overall due to the trade war, but more goods on which sticker prices are going up.

“We are now seeing multiple customers increasing pricing,” said Ryan Martin, president of distribution and fulfillment for ITS Logistics.

While price tags are placed on items at the manufacturer, Martin said over the past month his company has started re-ticketing “millions of units of products for many customers,” items ranging from apparel to consumer products in the warehouse being prepped for eventual delivery or immediate transport to stores.

Depending on the product, price increases range from 8%-15%, he said.

“This is creating additional inflation,” Martin said. It is happening in e-commerce as well, he said, though the price change is reflected online, not on the product.
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