US GDP contracted 0.3% last quarter, which was the first time the US economy shrunk since Q1 2022. Imports surged 41% and consumer spending growth, while positive, was the weakest since 2023. On the positive side, business spending was strong. The GDP contraction is big news because the National Bureau of Economic Research (NBER) considers 2 consecutive negative GDP growth quarters key data points to determine if the economy is in a recession.
Source: US Census Bureau, as of May 6, 2025.