Tidbits, U.S. GDP, China PMI, Broilers & Ethanol 5/1/25
- Wright team
- May 1
- 4 min read
Tidbits
U.S. Bureau of Economic Analysis reported yesterday morning the U.S. economy contracted 0.3% in the first quarter of 2025. Imports increased 41.3% which reduces GDP as the domestic economy does not produce imports. GDP is the measure of the value of all goods and services produced, not imported.
Many companies went on a purchasing spree in the first quarter to avoid the potential price increases caused by tariffs. First quarter contraction was a sharp reversal from the 2.4% growth in the previous quarter and came in below market expectations of 0.3% growth. A surge in imports contributed greatly to the slowdown, as businesses and consumers rushed to stockpile goods in anticipation of higher costs following a series of tariff announcements by the Trump administration. Consumer spending also cooled to 1.8% growth, the slowest pace since Q2 2023, while federal government expenditures fell 5.1%, the steepest drop since Q1 2022. In contrast, fixed investment surged 7.8%, the most since the 2nd quarter of 2023.
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