Gross Domestic Product: 1st Quarter 2025

In the first quarter of 2025, real U.S. GDP declined by 0.3%, reversing the 2.4% growth from the previous quarter. This contraction was mainly due to a sharp rise in imports and a drop in government spending—particularly in federal defense—despite gains in investment, consumer spending, and exports. Inflation pressures remained high, with the personal consumption expenditures (PCE) price index rising 3.6%. Notably, California wildfires also contributed to economic disruption, with an estimated $45 billion in damages to private and public fixed assets.