The United States economy contracted 0.3% from January to March, marking the first recession in three years.
The slowdown was driven by a surge in imports as U.S. companies sought to bring in foreign goods before President Donald Trump imposed significant tariffs.
The growth rate in the first quarter was the slowest in nearly three years and slowed from 2.4% in the final three months of 2024.
Imports weighed on growth in the first quarter, reducing it by five percentage points.
Consumer spending has also slowed significantly.
Federal government spending fell 5.1%.
However, business investment increased by 21.9% as companies spent money on equipment purchases.
The measure, which measures the underlying stability of the economy and is related to GDP, rose 3% year-on-year from January to March, compared with 2.9% in the fourth quarter of 2024.
This category includes consumer spending and private investment but excludes volatile components such as exports, inventories, and government spending.
Mr Trump inherited a strong economy that grew steadily despite high interest rates set by the Federal Reserve to combat inflation.
His unpredictable trade policies, including 145 percent tariffs on Chinese goods, have paralyzed businesses and threaten to raise prices and hurt consumers.
Sourse: breakingnews.ie
