{"id":16573,"date":"2025-06-26T15:10:10","date_gmt":"2025-06-26T15:10:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/16573\/"},"modified":"2025-06-26T15:10:10","modified_gmt":"2025-06-26T15:10:10","slug":"the-ominous-warning-of-poor-economic-health-as-trumps-tariffs-loom","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/16573\/","title":{"rendered":"The ominous warning of poor economic health as Trump’s tariffs loom"},"content":{"rendered":"

By BEN SHIMKUS, CONSUMER REPORTER FOR DAILYMAIL.COM<\/a> and REUTERS <\/p>\n

Published: 09:40 EDT, 26 June 2025 | Updated: 10:26 EDT, 26 June 2025 <\/p>\n

America’s economy produced less than expected to start the year.\u00a0\u00a0<\/p>\n

The US economy shrank at a 0.5 percent annual pace from January through March, the Commerce Department reported Thursday.\u00a0<\/p>\n

It was an unexpected downgrade from its previous estimate of 0.2 percent<\/a>.<\/p>\n

First-quarter growth sank under a surge of imports as companies in the United States rushed to bring in foreign goods before Trump could impose tariffs on them.\u00a0<\/p>\n

It’s ‘another challenge for a day where there’s a lot of moving parts,’ Bret Kenwell, a US investment analyst at eToro, told DailyMail.com.\u00a0<\/p>\n

‘A bumpy import\/export number was expected, but the bigger concern is consumer spending.’\u00a0<\/p>\n

Consumer spending slowed sharply, expanding just 0.5 percent.\u00a0<\/p>\n

In the last quarter of the Biden administration, the economy was producing at a robust 4 percent clip.\u00a0<\/p>\n

\"The <\/p>\n

The US economy produced at a slower clip than previously expected, new federal numbers show<\/p>\n

The first three months of 2025 also saw a deep cut in US production.\u00a0\u00a0<\/p>\n

A January through March drop in gross domestic product\u00a0\u2014 the nation’s output of goods and services \u2014\u00a0reversed a 2.4 percent increase in the last three months of 2024 and marked the first time in three years that product outflows contracted.<\/p>\n

Imports expanded 37.9 percent, the fastest since 2020, and pushed GDP down by nearly 4.7 percentage points.<\/p>\n

A category within the GDP data that measures the economy’s underlying strength<\/a> rose at a 1.9 percent annual rate from January through March, down from 2.9 percent in the fourth quarter of 2024.\u00a0<\/p>\n

This category includes consumer spending and private investment but excludes volatile items like exports, inventories, and government spending.<\/p>\n

And federal government spending fell at a 4.6 percent annual pace, the biggest drop since 2022.\u00a0<\/p>\n

Trade deficits reduce GDP.\u00a0But that’s just a matter of mathematics.\u00a0<\/p>\n

GDP is supposed to count only what’s produced domestically, not stuff that comes in from abroad.\u00a0<\/p>\n

\"America <\/p>\n

America is one bad quarterly economic reading away from a technical recession – but investors and economists aren’t as worried about the next reading\u00a0<\/p>\n

\"American <\/p>\n

American consumer spending cooled further than expected, federal economists found<\/p>\n

So imports \u2014 which show up in the GDP report as consumer spending or business investment\u00a0\u2014 have to be subtracted out to keep them from artificially inflating domestic production.<\/p>\n

The first-quarter import influx likely won’t be repeated in the April-June quarter and therefore shouldn’t weigh on GDP.\u00a0<\/p>\n

In fact, economists expect second-quarter growth to bounce back to 3 percent in the second quarter, according to a survey of forecasters by the data firm FactSet.<\/p>\n

The first look at April-June GDP growth is due July 30. If the quarter shows an unlikely GDP downfall, the US will be in a recession.\u00a0<\/p>\n

Investors have also remained skeptical about America’s economic downfall.\u00a0<\/p>\n

This week, major Wall Street indexes hit record highs<\/a>, as an inflow of cash keeps pumping through the economy.\u00a0<\/p>\n

‘Stocks are still hovering near record highs as tech continues to lead the rebound on Wall Street,’ Kenwell said.\u00a0<\/p>\n

‘Investors want to see two things come out of the second quarter: Better-than-expected earnings growth and a rebound to positive annualized GDP growth.\u00a0<\/p>\n

‘If the latter is achieved, the US will avoid the technical definition of a recession.’<\/p>\n

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\n The ominous warning of poor economic health as Trump’s tariffs loom<\/p>\n","protected":false},"excerpt":{"rendered":"By BEN SHIMKUS, CONSUMER REPORTER FOR DAILYMAIL.COM and REUTERS Published: 09:40 EDT, 26 June 2025 | Updated: 10:26…\n","protected":false},"author":3,"featured_media":16574,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,211,79,67,132,68,3094],"class_list":{"0":"post-16573","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-dailymail","10":"tag-economy","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us","14":"tag-yourmoney"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114750306780142038","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/16573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=16573"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/16573\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/16574"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=16573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=16573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=16573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}