Steve Forbes Media joins the “Big Money Show” panel to talk to international consequences of increasing trade tensions between the United States and China.
US economy was concluded in the first quarter as president Donald Trump According to new data released on Wednesday, the economic agenda was implemented.
The Office of Economic Analysis of the Ministry of Commerce (BEA) released its prepaid estimation for the first quarter of GDP (GDP), which it found The US economy contracted At the annual rate of 0.3 % in the first quarter, running from January to March.
The economists surveyed by LSEG expected the economy to grow at 0.3 % in the quarter. Contraction of 0.3 % was slower than the first trimester 2.4 % GDP growth Recorded in the fourth quarter. The three -month contraction was the first time since the first quarter of 2022.
The decline in GDP is primarily attributed to increased imports, which is considered to be subtraction in the calculation of GDP as well as reduced government costs. These changes were partially offset by increased investment, consumer costs and exports.
An increase of 41 percent imports by Consumer goodsPrimarily pharmaceutical goods, medicines and vitamins. And by capital goods such as computers and parts.
Increases are partly directed by importers pre -regulating products in an attempt to beat the cargoes to beat it Trump tariffsHuman
Consumer costs increased by the profits of both services (2.4 %+) and goods (0.5 %) (0.5 %) because the cost of service was increased by health care, housing and applications. At the cost of goods, an increase of 2.7 % in unbearable goods was partially offset by a 3.4 % decrease in durable goods.
ADP says the private sector added 62,000 jobs in April, much lower than expectations.
Imports increased in the first quarter as importers were looking for preceding tariff costs and inventory construction before the tariffs were implemented. (Photo by Qian Weizhong / VCG through Getty Images / Getty Images)
Business investment In the first quarter, after a 5.6 % decrease in the fourth quarter, 21.9 % increased. Non -residential investment increased by 9.8 % in the quarter and is directed by 22.5 % in equipment costs.
Disposable personal income in the first trimester was 2.7 %, up from 1.9 % in the fourth quarter.
Personal savings Since the percentage of personal income was 4 % in the first trimester, from 3.7 % in the fourth quarter – although in the first quarter of 2024 was reduced from 5.4 %.
Consumer confidence fell to 5 years in April
Government expenses In the first quarter, it fell 1.4 percent and decreased by 5.1 percent federal government spending. Federal costs for national defense activities have fallen by 8 %, while illegal costs are only 1 %. The costs of the government and the local government have increased by 0.8 %, the lowest increase from the second trimester of 2022.
“GDP is lagging behind, but good news as actuals for private domestic buyers, the engine of the economy, has a good profit,” wrote.
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“This will be tested because the economy is currently being hit by several shocks, including tariffs, supply chain stress, financial market conditions and uncertainty, but daily data suggests that the economy engine has not stopped early three months,” he said.
“Q1 data on GDP highlights the connection where the Federal Reserve is located. The economy was basically stagnant in the first three months of the year, while growth in the headlines and main inflation has accelerated, and raises concerns about the recession.