<ul><li>U.S. real GDP declined by 0.2% in Q1 2025, marking the first contraction since early 2022 and a sharp reversal from the 2.4% growth in Q4 2024.</li><li>The contraction was driven by reduced government spending, increased imports, and a decrease in consumer spending and government investment.</li><li>Real final sales to domestic purchasers rose by 2.5%, while real gross domestic income (GDI) fell by 0.2% in contrast to the 5.2% growth in Q4 2024.</li><li>Persistently high inflation was noted, with the price index for gross domestic purchases rising by 3.3% and the core PCE price index by 3.4%. Corporate profits declined by $118.1 billion due to tariffs and weakening demand.</li></ul>

U.S. Real GDP Declined by 0.2% in Q1 2025

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