The US economy decreased by 0.3 % in the first quarter, where the uncertainty in Trump’s policy was for companies

The American economy contracted in the first three months of 2025, which raised the recession at the beginning of President Donald Trump’s second term in his post, as it looked like a possible trade war.

gross domestic productThe amount of all goods and services produced from January to March, at an annual rate, decreased by 0.3 %, according to the Ministry of Commerce report on Wednesday amending seasonal factors and inflation. This was the first quarter of negative growth since the first quarter of 2022.

The economists surveyed by Dow Jones were looking for a 0.4 % profit after the GDP increased by 2.4 % in the fourth quarter of 2024. However, during the past day or so, some economists in Wall Street have a view of negative growth, due to an unexpected increase in imports while consumers sought to advance in the Trump tariff It was implemented in early April.

In fact, imports increased by 41.3 % for a quarter, driven by 50.9 % in the goods. Imports of gross domestic product are presented, and therefore the contraction cannot be seen as negatively given the possibility that the direction is reflected in subsequent quarters. Imports took more than 5 percentage points of reading address. Exports increased 1.8 %.

“Some of this negativity may be due to the rush to bring imports before the definitions rise, but there is no way for political consultants to this sugar. Growth has simply disappeared,” said Chris Robki, the chief economist at FWDBONDS.

Consumer spending slowed during this period but was still positive. Personal consumption expenditures increased by 1.8 % for this period, which is the slowest quarterly profit since the second quarter of 2023 and a decrease of 4 % profit in the previous quarter.

Moreover, the local private investment increased during this period, as it increased by 21.9 %, driven primarily, an increase of 22.5 % in the spending of equipment that could have been driven by tariffs.

“It is not surprising that GDP has achieved great success in the first quarter, mainly due to the fact that the balance of trade has exploded when companies imported goods such as Crazy to Front Run. Robert Freik, economist in the Federal Credit Union at the end of last year, said,“ The most wonderful number of the future of expansion is the spending of consumers, but at a relatively weak pace.

Futures in the stock market It slipped after the report while the closet’s revenues rose up.

The report presented cross -reserves for the Federal Reserve before the policy meeting next week. While the negative growth number may push the central bank to consider lowering interest rates, inflation readings can give policymakers a temporary stop.

The Personal Consumption Expenditure Expenses Index, which is the preferred inflation scale of the Federal Reserve, increased by 3.6 % for a quarter, with a sharp increase in an increase of 2.4 % in the fourth quarter. Except for food and energy, Core PCE increased by 3.5 %. Federal Reserve officials are the best measure of long -term trends.

Related reading known as the weighted price index, which adjusts changes in consumer behavior and other factors, increased by 3.7 %, much higher than 3 % estimate.

Also Wednesday, the work statistics office stated that the employment cost index increased by 0.9 % in the first quarter, in line with expectations.

While the economy still adds jobs and consumers are still spent, the GDP report raises both the risk of stagnation and risk to Trump while negotiating with American trading partners.

The traditional report on stagnation is two consecutive quarterly quarterly, although the official ruling, the National Office for Economic Research, uses a definition “a significant decrease in economic activity that is spread throughout the economy and lasts more than a few months.”

The market will then search for the Bls Nonfarm Rolls account, which will be released on Friday. The ADP salary processing company said on Wednesday that private employment rose only 62000 in April.

This is urgent news. Please update for updates.