CHART OF THE WEEK
US consumer behind slower growth in early Q1
In terms of economic data released in late February, a large standout was the Atlanta Fed’s GDPNow (US GDP growth estimate for Q1 2025) falling into negative territory. This slowing was largely driven by a significant drop in both net-exports and consumption. It appears companies began to import more to front-run tariffs the Trump administration is expected to impose on China, Mexico, Canada, and more. Plus, the US consumer is saving more.