The Q1 2025 decrease primarily reflected an increase in imports, which are a subtraction in the calculation of GDP; a decrease in government spending; and a deceleration in consumer spending.
These movements were partly offset by increases in investment, consumer spending and exports, a BEA release said.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased by 3 per cent in Q1 2025 compared with an increase of 2.9 per cent in Q4 2024.
The price index for gross domestic purchases increased by 3.4 per cent in Q1 2025 compared with an increase of 2.2 per cent in Q4 2024.
The personal consumption expenditures (PCE) price index increased by 3.6 per cent (3.5 per cent excluding food and energy prices) in Q1 2025 compared with an increase of 2.4 per cent (2.6 per cent) in Q4 2024.
Excluding food and energy prices, the PCE price index increased by 3.5 per cent compared with an increase of 2.6 per cent in Q4 2025.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
