The US economy contracted 0.3% in the first quarter of this year, the first negative reading since 2022, according to an initial measurement released Wednesday by the Commerce Department.
The decline in gross domestic product was fuelled by a massive surge in imports while other parts of the US economy showed signs of slowing.
Consumer spending climbed 1.8%, the weakest to pace since mid-2023. The report also showed inflation remained firm.
The report is among the last data points to capture a snapshot of the US economy before President Donald Trump's tariffs announcement sent shock waves around the world. The Commerce Department reported the US trade deficit in merchandise unexpectedly widened in March to an all-time high as companies began ramping up imports to get ahead of Trump’s import duties.
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