US Real GDP Declines at an Annual Rate of 0.3% in Q1, BEA Reports in Its “Advance” Estimate
Gross Domestic Product, 1st Quarter 2025 (Advance Estimate)
On Wednesday, the Bureau of Economic Analysis (BEA) released its “advance” estimate for Q1 real gross domestic product (GDP). Real GDP declined at an annual rate of 0.3% in Q1, following an increase of 2.4% in 2024Q4.
Compared to Q4, the downturn in real GDP reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending that were partly offset by upturns in investment and exports.
The price index for gross domestic purchases increased 3.4% in Q1, compared with an increase of 2.2% in Q4. The personal consumption expenditures (PCE) price index increased 3.6%, up from an increase of 2.4%. Excluding food and energy prices, the PCE price index increased 3.5%, up from an increase of 2.6%.
The “advance” estimate is based on source data that are incomplete or subject to further revision. The “second” estimate, based on more complete source data, will be released on May 29.
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