The U.S. economy shrank more than expected in the first quarter of 2025.

According to the data, the contraction of GDP was greater than forecast, with consumer spending and exports turning out lower than expected.

Specifically, on an annualized basis, GDP shrank by 0.5% in the first quarter, compared to the previous estimate of a 0.2% decline.

Analysts had expected a smaller contraction, which heightens concerns about the overall trajectory of the U.S. economy.