In Q4 2024, real GDP increased by 2.4 per cent.
The Q1 2025 drop 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 and consumer spending.
Real GDP was revised down by 0.3 percentage point (pp) from the second estimate, primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports.
Real final sales to private domestic purchasers—the sum of consumer spending and gross private fixed investment—increased by 1.9 per cent in Q1 2025, revised down by 0.6 pp from the previous estimate.
From an industry perspective, the decrease in real GDP reflected decreases of 2.8 per cent in real value added for private goods-producing industries and 0.3 per cent for private services-producing industries that were partly offset by an increase of 2 per cent in real value added for government, a BEA release said.
Real gross output increased by 0.6 per cent in the first quarter, reflecting an increase of 1.1 per cent for private services-producing industries that was partly offset by decreases of 0.6 per cent for private goods-producing industries and 0.6 per cent for government.
The price index for gross domestic purchases increased by 3.4 per cent in Q1 2025, revised up by 0.1 pp from the previous estimate.
The US personal consumption expenditures (PCE) price index increased by 3.7 per cent, and the PCE price index excluding food and energy increased by 3.5 per cent in Q1 2025, both 0.1 pp higher than previously estimated.
Real gross domestic income (GDI) increased by 0.2 per cent in Q1 2025, revised up by 0.4 pp from the previous estimate.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased by $90.6 billion in Q1 2025—an upward revision of $27.5 billion.
ALCHEMPro News Desk (DS)
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