The U.S. economy contracted by 0.2 percent in the first quarter of 2025, according to a second estimate from the Bureau of Economic Analysis. This is a slight upward revision from the initial estimate. The decrease was primarily due to increased imports and decreased government spending, partially offset by growth in investment, consumer spending, and exports. Real final sales to private domestic purchasers increased 2.5 percent, while the price index for gross domestic purchases rose 3.3 percent.

Prepared by Christopher Adams and reviewed by editorial team.