US economy shrank much faster in the first quarter than previously reported as consumers reined in their spending

The US economy contracted at an annualized rate of 0. 5% in the first quarter of 2025, which is a faster shrinkage than the previously reported 0. 2%.

This revision was due in part to weaker consumer spending, which significantly weighed on overall economic growth. Multiple sources including the Commerce Department's final estimate confirm this downward revision.