US economy contracts by 0.2% in Q1, better than expectations

The BEA stated that the US GDP decreased at an annual rate of 0.2% in the first quarter of 2025, according to the bureau's second estimate, while the first estimate was at minus 0.3%.

The bureau said the decrease in the GDP in the first quarter primarily reflected an increase in imports, adding that imports 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," it added.

The GDP was revised up 0.1 percentage points from the advance estimate, reflecting an upward revision to investment that was partly offset by a downward revision to consumer spending, it noted.