U.S. Economy Contracts in First Quarter of 2025

Grocery shopping

U.S. real gross domestic product (GDP) decreased at a rate of 0.3% in the first quarter of 2025, according to statistics released by the Bureau of Economic Analysis (BEA) on Wednesday.

The first quarter decrease follows the U.S. economy growing by 2.4% in the fourth quarter of 2024, after increasing 3.1% in the third quarter, according to the BEA. The Federal Reserve Bank of Atlanta’s GDPNow, a running estimate of real GDP growth based on available economic data, projected a -2.7% GDP growth rate in the first quarter of 2025.

Read the full story