U.S. GDP Takes a Hit as Consumer Spending Grinds to a Halt

America's economic engine sputters—just as Wall Street analysts finish their third espresso.

Consumers tap out: The latest GDP figures reveal a slowdown fueled by flatlining wallets. No surprises here—just another day in late-stage capitalism's rollercoaster.

What's really bleeding? Main Street's spending power, while the Fed debates whether to call this a 'soft landing' or start drafting recession bingo cards.

Remember: When GDP catches a cold, crypto traders start buying the dip like it's Black Friday for volatility.

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The BEA now expects first-quarter GDP to fall by 0.5% on an annualized basis compared to its prior estimate for a drop of 0.2%. If the estimate holds, it WOULD mark the first quarter of negative GDP growth since the -1.0% decline in the first-quarter of 2022. It would also reverse a 2.4% gain in the fourth-quarter.

Rising Imports and Lower Consumer Spending Hit GDP

Many businesses rushed to import foreign products during the first quarter in order to front-run President Trump’s tariffs. This strategy lowers GDP because imports are subtracted from the calculation.

Meanwhile, consumers spent less on travel and leisure, as the BEA revised its transportation and recreation services figures lower. In total, consumer spending growth was revised to 0.5%, down from 1.2%.

The sustained negative GDP estimate doesn’t bode well for the stock market. Historically, a recession has been loosely defined as two consecutive quarters of negative GDP growth.

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