Financial News: U.S. Economy Shrinks More Than Previously Estimated In

U.S. Economy Shrinks More Than Previously Estimated In Q1

06/26/2025 - 10:33:00 (RTTNews)

(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy shrank by more than previously estimated in the first quarter of 2025.

The Commerce Department said real gross domestic product fell by 0.5 percent in the first quarter compared to the previously reported 0.2 percent dip. Economists had expected the decrease by GDP to be unrevised.

The bigger than previously estimated decline primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports, which are a subtraction in the calculation of GDP.

The modest decrease by GDP in the first quarter came following a 2.4 percent jump by GDP in the fourth quarter of 2024.

The downturn by GDP primarily reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending that were partly offset by an upturn in investment.

On the inflation front, the Commerce Department said the personal consumption expenditures price index surged by 3.7 percent in the first quarter, 0.1 percentage point higher than previously estimated.

The jump by the core PCE price index, which excludes food and energy prices, was also upwardly revised by 0.1 percentage point to 3.5 percent.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Seven-Year Note Auction Attracts Below Average Demand (23 min(s), 16 sec(s) ago)
(RTTNews) - The Treasury Department finished off this week's series of announcements of the re ...Full Story»

U.S. Pending Home Sales Unexpectedly Rebound In May (03 hr(s), 32 min(s), 16 sec(s) ago)
(RTTNews) - The National Association of Realtors released a report on Thursday showing an unexpect ...Full Story»

U.S. Economy Shrinks More Than Previously Estimated In Q1 (03 hr(s), 36 min(s), 16 sec(s) ago)
(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy s ...Full Story»

U.S. Durable Goods Orders Soar 16.4% In May, Much More Than Expected (03 hr(s), 59 min(s), 16 sec(s) ago)
(RTTNews) - New orders for U.S. manufactured durable goods spiked by much more than expected in th ...Full Story»

U.S. Weekly Jobless Claims Unexpectedly Dip To 236,000 (04 hr(s), 26 min(s), 16 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed first-time claims for U.S ...Full Story»

U.S. GDP Falls More Than Previously Estimated In Q1 (05 hr(s), 02 min(s), 16 sec(s) ago)
(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy s ...Full Story»

U.S. GDP Falls More Than Previously Estimated In Q1 (05 hr(s), 25 min(s), 16 sec(s) ago)
(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy b ...Full Story»

U.S. Durable Goods Orders Soar Much More Than Expected In May (05 hr(s), 30 min(s), 16 sec(s) ago)
(RTTNews) - New orders for U.S. manufactured durable goods spiked by much more than expected in th ...Full Story»