Real US GDP down 0.2% YoY in Q1 2025: BEA 2nd estimate

In Q4 2024, real GDP increased by 2.4 per cent year on year (YoY).

The decrease in real GDP in Q1 2025 primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending. These movements were partly offset by increases in investment, consumer spending and exports, a BEA release said.

Real GDP was revised up by 0.1 percentage point (pp) from the advance estimate, reflecting an upward revision to investment that was partly offset by a downward revision to consumer spending.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.5 percent in the first quarter, revised down 0.5 pp from the previous estimate.

The price index for gross domestic purchases increased by 3.3 per cent YoY in Q1 2025—revised down by 0.1 pp from the previous estimate.

The personal consumption expenditures (PCE) price index increased by 3.6 per cent YoY in the quarter, the same as previously estimated. Excluding food and energy prices, the PCE price index increased by 3.4 per cent, revised down by 0.1 pp from the previous estimate.

Real gross domestic income (GDI) decreased by 0.2 per cent YoY in Q1 2025 compared to an increase of 5.2 per cent in Q4 2024.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased by $118.1 billion in Q1 2025 compared to an increase of $204.7 billion in the q4 2024.

ALCHEMPro News Desk (DS)