THE US economy Under contract in the first quarter, weighed down by a deluge of goods imported by companies wishing to avoid higher costs, highlighting the disruptive nature of the president Donald Trump Often chaotic tariff political.
The gross domestic product decreased at an annualized rate of 0.3% in the last quarter, the economic analysis office of the Commerce Department declared in its prior estimate of the first quarter GDP Wednesday.
American gross domestic product (GDP)
The economists interviewed by Reuters had planned that GDP had increased at a rate of 0.3% during the January-March period. However, the survey was concluded before Tuesday’s data showed that the trade deficit of goods had reached a record level in March in the midst of record imports, which prompted most economists to strongly retrograde their GDP estimates.
The economy increased at a rate of 2.4% in the fourth quarter.
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But the report probably exaggerated the prospects for gradation of the economy as consumer spending continued to grow, but at a moderate pace.
Coinciding with the first 100 days of Trump in office, he has so far reinforced the growing disapproval of Americans from his management of the economy. Trump won the victory last November on the anxiety of voters over the economy, in particular inflation.
Consumer confidence is close to five years and the feeling of companies sang. Airlines have pulled their 2025 financial forecasts, citing uncertainty over travel expenses not essential due to prices, which, according to economists, will increase costs for businesses and households.
Given that an unusually large quantity of non -monetary gold had represented part of the import of imports, some economists warned to gain too much weight on the GDP number. Others argued that the data had not changed the account of an economy in difficulty due to the uncertainty due to the prices.
Inflation resumed the last quarter and should increase more throughout the year. Economists expect the federal reserve to reduce interest rates at a given time this year.
Trump softened on Tuesday the stroke of his car prices thanks to credits to mix decrees with relief from other samples from parts and materials.
A 145% tariff on Chinese products, which sparked a trade war between Washington and Beijing, remains in place, just like a range of other import rights. Trump considers prices as a tool to increase income to compensate for his promised tax reductions and to relaunch an American industrial base that has been detachet for a long time.