Drop comes amid a huge fall in consumer sentiment, which in April dropped 32% to lowest level since 1990 recession

Drop comes amid a huge fall in consumer sentiment, which in April dropped 32% to lowest level since 1990 recession

The US economy shrank in the first three months of the year, according to official data, triggering fears of an American recession and a global economic slowdown.

Donald Trump, who returned to the White House promising to “make America great again”, sought to blame Joe Biden for the figure.

However, economists said it was largely driven by an unprecedented surge in imports, as consumers and companies braced for the president to impose his controversial wave of tariffs.

  • manxu@piefed.socialEnglish
    5·
    23 hours ago

    However, economists said it was largely driven by an unprecedented surge in imports, as consumers and companies braced for the president to impose his controversial wave of tariffs.

    That’s the worst part: a significant chunk of the economic activity in the first quarter came from companies getting ready for tariffs. So now they are totally overstocked for a country bracing for the reduction of consumer spending that usually comes with a drop in consumer sentiment.

    • Voroxpete@sh.itjust.works
      3·
      13 hours ago

      Oh, don’t worry… This data is from January to March, so it doesn’t really reflect the actions of the current president. We’ve not even begun to see the impact of Trump’s bold economic agenda.

      It’s going to get so, so much worse.