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U.S. GDP Revised Down to -0.3% Due to Inventory Stocking

Coin WorldThursday, May 1, 2025 7:52 am ET

1min read

U.S. Treasury Secretary Janet Yellen has announced that the Gross Domestic Product (GDP) data for the United States is expected to be revised. This revision is anticipated due to the decline in GDP, which may have been influenced by inventory stocking of imports. The initial estimate of the U.S. real GDP annualized quarter-on-quarter rate for the first quarter recorded -0.3%, with an expectation of 0.3% and a previous value of 2.40%. This marks the first negative growth since the second quarter of 2022.

Yellen emphasized that despite the GDP decline, U.S. household consumption remains robust, suggesting that the overall economic health is not severely impacted. The expected revision in GDP data comes at a time when the global economy is facing various challenges. While specific details on the revision were not provided, the indication from Yellen suggests that the initial data may not fully capture the economic dynamics at play. The revision is likely to provide a more accurate picture of the economic conditions, taking into account factors such as inventory management and import activities.

Yellen's comments also come in the context of broader economic discussions. In June 2021, she acknowledged the presence of some inflation, attributing it to temporary issues such as global supply chain disruptions. This acknowledgment aligns with the current expectation of a GDP revision, as both instances highlight the need for a nuanced understanding of economic data in the face of temporary and external factors.

The revision in GDP data is expected to reflect a more accurate assessment of the economic landscape, considering the strong household consumption and the potential impact of inventory stocking. This adjustment will be crucial for policymakers and economists to make informed decisions and develop strategies to support economic growth. The revision is also likely to influence future economic forecasts and policy directions, as it provides a clearer picture of the current economic conditions.

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