The U.S. economy contracted in the first quarter as President <a href="https://www.foxbusiness.com/category/donald-trump" target="_blank" rel="noopener">Donald Trump's</a> economic agenda took effect, according to new data released on Wednesday.

The Commerce Department's Bureau of Economic Analysis (BEA) released its advance estimate for first quarter gross domestic product (GDP), which found the <a href="https://www.foxbusiness.com/category/economic-indicators" target="_blank" rel="noopener">U.S. economy contracted</a> at an annual rate of 0.3% in the first quarter, which runs from January through March.

Economists surveyed by LSEG had expected the economy to grow at a 0.3% rate in the quarter. The first quarter's 0.3% growth was slower than the <a href="https://www.foxbusiness.com/economy/us-economy-gdp-q4-2024" target="_blank" rel="noopener">2.4% GDP growth</a> recorded in the fourth quarter.

This is a developing story. Please check back for updates.

The U.S. economy contracted at a rate of 0.3% in the first quarter of 2025, according to an estimate released on Wednesday by the Bureau of Economic Analysis.{ai:summary}The U.S. economy shrank by 0.3% in the first quarter, contrary to expectations of 0.3% growth, as President Trump's economic policies began to take effect. This marks a significant slowdown from the 2.4% growth seen in the previous quarter.The data comes from the Commerce Department's Bureau of Economic Analysis. This is a developing story. #economy

US economy slows sharply, shrinking 0.3% in the first quarter, as tariffs weigh

Loading...