Real gross domestic product (GDP) grew -0.3% on a quarter-over-quarter, seasonally adjusted annual rate, according to the Bureau of Economic Analysis. Consensus economist forecasts pegged last quarter’s real GDP growth at 0.4%, according to Dow Jones data, a stark decrease from the prior period’s 2.4% expansion.

GDP shrank in the first quarter, a new report shows, offering a look at how tariffs are reshaping spending patterns and changing the economy.

U.S. economy shrank 0.3% in Q1 2025, reversing the 2.4% growth seen in Q4 2024. Rising imports and falling government spending drove the GDP declin

U.S. share futures dropped and bond yields rose on Wednesday after data showed the U.S. economy contracted in the first quarter, underscoring the disruptive nature of President Donald Trump's often chaotic tariff policy.