GDP Data Shows U.S. Economy Shrank More Than Previously Thought In Early 2025

CBS Bay Area

June 27, 2025

The U.S. economy shrank faster than previously thought during the first three months of 2025, with growth contracting for the first time in three years.

The country's gross domestic product fell at an annual rate of 0.5% from January through March, the Commerce Department reported Thursday in its third and final GDP report for the period. The agency's initial first-quarter GDP report, issued in April, estimated a 0.3% decline, which was later revised to a 0.2% dip in its second print.

First-quarter growth was weighed down by a surge of imports as U.S. companies and households rushed to buy foreign goods before the Trump administration's tariffs went into effect. Although a surge in imports can appear to lower economic growth because it shows a shift away from domestic consumption, that doesn't tell the whole story about the U.S. economy, experts say.

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