The US Commerce Department on Wednesday said declined by 0.3% in the first quarter, according to preliminary data.
The first gross domestic product (GDP) figures for ‘s second term had been highly anticipated, especially after the he has implemented since taking office.
US stock index futures dropped after the GDP reading raised worries of a US slowdown amid a .
How do the figures stack up?
GDP decreased at an annual rate of 0.3% in the first quarter, having grown by 2.4% in the final months of 2024.
The data was far below a market consensus estimate of 0.4% growth.
“The downturn in real GDP in the first quarter reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending,” the Commerce Department said.
The reading was published on the 101st day since Trump’s return to the Oval Office on January 20.
Since then, the US president has announced several rounds of import levies, laying out plans in March to impose tariffs on top trading partners from early April that were later put on ice.
The downturn was largely attributed to a surge in imports as businesses and consumers stockpiled in anticipation of future Trump tariffs.
What has Trump said about the growth dip?
Trump blamed his predecessor Joe Biden for the bad economic news in a post on post on his Truth Social platform.
“This is Biden’s Stock Market, not Trump’s,” the US president wrote. “Our Country will boom, but we have to get rid of the Biden ‘Overhang.’”
Edited by: Jenipher Camino Gonzalez
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