US economy contracts 0.3% in Q1

The US economy contracted 0.3% in the first quarter on a yearly basis, the US Bureau of Economic Analysis said Wednesday.

"The decrease in the GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending," it said.

The movements were partly offset by increases in investment, consumer spending and exports, it added.

The US GDP expanded 2.4% on a yearly basis in the last quarter of 2024, the agency noted.

"Compared to the fourth quarter, the downturn in real GDP in the first quarter reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending that were partly offset by upturns in investment and exports," it said.