Consumer expenses and exports have proven to be lower than expected, according to data published this Thursday.
The US economy has contracted more than expected in the first three months of the year, according to official data published this Thursday, consumer spending and exports turning lower than expected. In annualized pace, a measure favored by the United States, the gross domestic product (GDP) contracted 0.5% in the first quarter, against a previous estimate evaluating it in withdrawal of 0.2%, the US trade ministry reported. This represents a decline of 0.1% compared to the previous quarter. Analysts expected this data not revised, according to the consensus published by Briefing.com.
“The drop in GDP in the first quarter mainly reflects an increase in imports, which constitute an subtraction in the calculation of GDP, and a decrease in public spending”is it underlined in the report of the ministry. This increase in imports shows that companies have constituted stocks before the entry into force of the important customs duties imposed by Donald Trump on most of the United States business partners, in particular products manufactured in China. The first estimate of GDP, published at the end of April, had the effect of a warning stroke. It was the first negative evolution for the first world economy since 2022, which was still flourishing at the end of 2024.
Thursday’s revision mainly reflects “Down lower revisions of consumer spending and exports”said the United States Ministry of Commerce. These revisions were “Partially offset” By lowering imports of the import level, the ministry added. While Donald Trump has revealed or postponed some of its most punitive commercial salvas in the context of current commercial negotiations, the July deadline approach for the entry into force of higher customs rights for dozens of business partners, which adds to economic uncertainty.
