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Story perspectives

US Economy Struggles: GDP Drops, Consumer Spending Declines

6/29/2025

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Story summary
  • The US economy is experiencing challenges, marked by a weakening labor market and declining consumer spending.
  • GDP fell by 0.5% in Q1 2025, while consumer spending increased by just 0.5%.
  • Real consumer spending declined by 0.3% in May, raising economic health concerns.
  • Unemployment claims are increasing, with nearly 2 million continuing claims indicating job market difficulties.
  • Unemployment rate held steady at 4.2% from March to May 2025.