30-May-2025 08:08

A report released by the Commerce Department on Thursday showed the U.S. economy shrank by slightly less than previously estimated in the first quarter of 2025.

The Commerce Department said real gross domestic product edged down by a revised 0.2 percent in the first quarter compared to the previously reported 0.3 percent dip. Economists had expected the modest decrease to be unrevised.

The slightly smaller than previously estimated decline reflected an upward revision to investment that was partly offset by a downward revision to consumer spending.

The modest decrease by GDP in the first quarter still reflects a notable downturn from the 2.4 percent jump in the fourth quarter of 2024.

The report said the downturn primarily 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.

On the inflation front, the Commerce Department said the personal consumption expenditures price index surged 3.6 percent in the first quarter, the same as previously estimated.

Excluding food and energy prices, the PCE price index shot up 3.4 percent, revised down 0.1 percentage point from the previous estimate.

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