U.S. economic growth flipped to contraction during 2025’s first quarter for its first negative quarter since early 2022, according to data released April 30 by the Commerce Department.

The Bureau of Economic Analysis’ initial estimate report showed that U.S. gross domestic product decreased at an annual rate of 0.3% in January-March, following healthy 2.4% growth in 4Q24.

The GDP decline was driven by a surge in imports — which detract from economic growth — and a decrease in government spending. Meanwhile, those factors were partially offset by increases in investment, consumer spending and exports.

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, consumer spending, and exports. Of that, however, consumer spending’s 1.8% annual increase was its slowest pace of growth since mid-2023.

Economists polled by the Wall Street Journal and other media outlets expected 1Q GDP growth of 0.4%.

The 1Q GDP estimate will be revised in a second report issued May 29.