News Release
Gross Domestic Product, 1st Quarter 2025 (Third Estimate), GDP by Industry, and Corporate Profits (Revised)
Real gross domestic product (GDP) decreased at an annual rate of 0.5 percent in the first quarter of 2025 (January, February, and March), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the fourth quarter of 2024, real GDP increased 2.4 percent.
The decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending. These movements were partly offset by increases in investment and consumer spending.
Real GDP was revised down 0.3 percentage point from the second estimate, primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports. For more information, refer to the "Technical Notes" below.
Compared to the fourth quarter, the downturn in real GDP in the first quarter primarily reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending that were partly offset by an upturn in investment.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 1.9 percent in the first quarter, revised down 0.6 percentage point from the previous estimate.
From an industry perspective, the decrease in real GDP reflected decreases of 2.8 percent in real value added for private goods-producing industries and 0.3 percent for private services-producing industries that were partly offset by an increase of 2.0 percent in real value added for government.
Real gross output increased 0.6 percent in the first quarter, reflecting an increase of 1.1 percent for private services-producing industries that was partly offset by decreases of 0.6 percent for private goods-producing industries and 0.6 percent for government.
The price index for gross domestic purchases increased 3.4 percent in the first quarter, revised up 0.1 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.7 percent, and the PCE price index excluding food and energy increased 3.5 percent, both 0.1 percentage point higher than previously estimated.
Real gross domestic income (GDI) increased 0.2 percent in the first quarter, revised up 0.4 percentage point from the previous estimate.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $90.6 billion in the first quarter, an upward revision of $27.5 billion.
| Real GDP and Related Measures | |||
|---|---|---|---|
| [Percent change from Q4 2024 to Q1 2025] | |||
| Advance Estimate | Second Estimate | Third Estimate | |
| Real GDP | -0.3 | -0.2 | -0.5 |
| Current-dollar GDP | 3.5 | 3.4 | 3.2 |
| Real final sales to private domestic purchasers | 3.0 | 2.5 | 1.9 |
| Real GDI | … | -0.2 | 0.2 |
| Average of Real GDP and Real GDI | … | -0.2 | -0.1 |
| Gross domestic purchases price index | 3.4 | 3.3 | 3.4 |
| PCE price index | 3.6 | 3.6 | 3.7 |
| PCE price index excluding food and energy | 3.5 | 3.4 | 3.5 |
BEA will begin releasing results from the 2025 annual update of the National Economic Accounts, which include the National Income and Product Accounts as well as the Industry Economic Accounts, on September 25, 2025. The update will present revised statistics for GDP, GDP by Industry, and GDI. For details, refer to Information on 2025 Annual Updates to the National, Industry, and State and Local Economic Accounts.
Next release: July 30, 2025, at 8:30 a.m. EDT
Gross Domestic Product (Advance Estimate)
2nd Quarter 2025
Technical Notes
Sources of revisions to real GDP in the third estimate
Real GDP decreased at an annual rate of 0.5 percent (0.1 percent at a quarterly rate1) in the first quarter, a downward revision of 0.3 percentage point from the previous estimate, primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports.
- Within consumer spending, the largest contributor to the revision was services, led by recreation services and transportation services, based on new and revised first-quarter data from the Census Bureau Quarterly Services Survey, as well as other services (led by international travel), based on revised data from BEA's International Transactions Accounts (ITAs).
- For both exports and imports, the revised estimates primarily reflected updated data from BEA's ITAs.
- Within exports, the downward revision was to services, led by other business services and charges for the use of intellectual property.
- Within imports, the revision reflected downward revisions to both services (led by other business services) and goods (led by industrial supplies and materials as well as by capital goods, except automotive).
More information on the source data and BEA assumptions that underlie the first-quarter estimate is shown in the key source data and assumptions table.
1Percent changes in quarterly seasonally adjusted series are displayed at annual rates, unless otherwise specified. For more information, refer to the FAQ "Why does BEA publish percent changes in quarterly series at annual rates?".