U.S. Q1 Preliminary Growth Rate at -0.2%... First Contraction in Three Years

First Quarterly Contraction Since Q1 2022

The U.S. Department of Commerce announced on May 29 (local time) that the preliminary growth rate of the United States' gross domestic product (GDP) for the first quarter was calculated at -0.2% (annualized, quarter-on-quarter). This figure is an upward revision of 0.1 percentage points from the advance estimate released last month (-0.3%). It also exceeded the expert forecast of -0.4% compiled by Dow Jones.

Container entering the port of Los Angeles, USA. Photo by Reuters Yonhap News

The Department of Commerce explained that the upward revision reflected an increase in investment. Personal consumption was revised downward compared to the advance estimate.

The preliminary estimate is calculated by incorporating economic activity indicators that were not included in the advance estimate.

This marks the first time in three years that the U.S. economy has contracted on a quarterly basis since the first quarter of 2022 (-1.0%).

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