U.S. economic growth turned negative in the first quarter of 2025, with GDP contracting at an annual rate of 0.3%, according to Barron's. The downturn follows 2.4% growth in the prior quarter and reflects a sharp reversal from 2024’s 2.8% expansion. The contraction came in below consensus expectations and was primarily attributed to a surge in imports and a decline in government spending. Business and consumer activity slowed amid policy uncertainty, marking a stark shift from the previous year’s momentum.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. economic growth turned negative in the first quarter of 2025 with GDP contracting
00:07at an annual rate of 0.3% according to Barron's. The downturn follows 2.4% growth in the prior
00:13quarter and reflects a sharp reversal from 2024's 2.8% expansion. Contraction came in
00:18below consensus expectations and was primarily attributed to a surge in imports and a decline
00:23in government spending. Business and consumer activity slowed amid policy uncertainty,
00:27marking a stark shift from the previous year's momentum.
00:30For all things money, visit Benzinga.com slash GSTV.