GDP Revised Lower as Consumers Slash Spending
June 26, 2025
8,277
116
35
1.82%
Search the Record
IndexedEvery word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
Bloomberg Podcasts Episodes Around June 26, 2025
See what was published immediately before and after this episode.
3:13Now PlayingGDP Revised Lower as Consumers Slash Spending
YouTube Description
as posted by the channelStephanie Roth, Chief Economist at Wolfe Research, breaks down today's slew of eco data and previews jobs next week.
US consumer spending grew in the first quarter at the weakest pace since the onset of the pandemic on a sharp deceleration in outlays for a variety of services.
Spending on services contributed 0.3 percentage point to gross domestic product in the first three months of the year, the least since the second quarter of 2020, according to Bureau of Economic Analysis figures published Thursday. That was down sharply from a previously reported 0.79 point boost.
Overall consumer spending increased at a 0.5% pace, instead of the previously reported 1.2%. GDP declined at a downwardly revised 0.5% annualized rate in the first quarter as a result.
The numbers indicate the economy’s woes early in the year weren’t entirely related to the deterioration in the trade balance related to the Trump administration’s tariffs.
“Recreational services and travel are among the components of spending that we flagged as being sensitive to shocks in consumer sentiment,” Ryan Sweet, chief US economist at Oxford Economics, said in a note. “High-frequency data that we track on US travel continue to deteriorate and will be a drag on Q2 GDP.”
All seven major categories of services spending were revised lower in the figures published Thursday. Recreation services spending led the downward revision, subtracting 0.14 percentage point from GDP instead of the previously reported 0.04 point boost.
The contributions from other services, includes net foreign travel, and transportation were also among the categories posting the largest downward revisions.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
Follow us on X
Subscribe to our Podcasts:
Bloomberg Daybreak
Bloomberg Surveillance
Bloomberg Intelligence
Balance of Power
Bloomberg Businessweek
Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay
Android Auto
Visit our YouTube channels:
Bloomberg Podcasts
Bloomberg Television
Bloomberg Originals
Guests & Subjects Covered
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.