The U.S. Bureau of Economic Analysis reported a decrease in real gross domestic product (GDP) at an annual rate of 0.2 percent for the first quarter of 2025, compared to a 2.4 percent increase in the previous quarter. This data comes from the second estimate released by the bureau.
The decline in GDP was primarily attributed to an increase in imports and a reduction in government spending, which were only partially offset by rises in investment, consumer spending, and exports. The GDP figure was revised upward by 0.1 percentage point from the initial advance estimate due to an upward revision in investment figures.
When comparing this quarter to the last, there was a noticeable upturn in imports alongside a slowdown in consumer spending and government expenditure. However, these factors were somewhat balanced by increases in investment and exports.
Real final sales to private domestic purchasers saw an increase of 2.5 percent but were revised downwards by 0.5 percentage points from prior estimates. The price index for gross domestic purchases rose by 3.3 percent, while the personal consumption expenditures (PCE) price index maintained its previously estimated increase of 3.6 percent.
Real gross domestic income (GDI) also saw a decline of 0.2 percent during this period, contrasting with a significant rise of 5.2 percent recorded in the fourth quarter of last year.
Corporate profits experienced a downturn as well, with current production profits falling by $118.1 billion after having increased by $204.7 billion during the preceding quarter.
These revisions and estimates are part of ongoing adjustments made based on updated data from various sources such as Census Bureau surveys and financial reports.
For further details on statistical conventions or updates to GDP measures, additional information is available through official channels. The next release regarding third-quarter estimates is scheduled for June 26, 2025.