WASHINGTON, May 29 (Xinhua) - Revised data released by the U.S. Commerce Department on Thursday showed that the Gross Domestic Product (GDP) contracted by an annualized rate of 0.2 percent in the first quarter, an upward revision of 0.1 percentage points from the initial estimate.
In the fourth quarter of 2024, U.S. GDP grew by an annualized rate of 2.4 percent. The latest data highlighted the growing uncertainty caused by the U.S. government's tariff policies, which have led to a decline in business and consumer confidence.
Specifically, the revised data showed that net exports dragged GDP down by 4.9 percentage points in the first quarter, a larger impact than the initial estimate of 4.83 percentage points. This reflects businesses stockpiling inventories on a large scale due to concerns over potential future tariff increases, resulting in a surge in imports during the quarter.
The Commerce Department noted that the 0.1 percentage point upward revision in GDP was primarily due to an upward adjustment in investment, although this was partially offset by a downward revision in consumer spending.
Nonresidential fixed investment, a key indicator of business investment, grew by 10.3 percent, contributing 1.36 percentage points to economic growth during the quarter. Personal consumption expenditures, which account for approximately 70 percent of the U.S. economy, increased by 1.2 percent, contributing 0.8 percentage points to economic growth.
The revised data also showed that federal government spending decreased by 4.6 percent during the quarter, dragging economic growth down by 0.3 percentage points. ■
