Guess what? The spending impulse in America was negligible during the first three months of 2025.

Given that we’re just days away from Q3, why am I talking about Q1? Because the BEA on Thursday released the third (and final) GDP tally for this year’s opening quarter, and the data included a rather remarkable downward revision to the personal consumption component.

I don’t want to overstate the case, or otherwise make mountains of molehills, but consider that personal consumption was reported at a 1.8% clip in the advanced read, released on April 30. In the second estimate, the pace was revised down to 1.2%. In Thursday’s release, it was just 0.5% — so, less than a third of the initially-reported tempo.

Do note: With Thursday’s revision, Q1 2025 marks the slowest pace of personal spending in America since the onset of the pandemic.

For reference, the 0.5% pace accrued a mere +0.31ppt to the headline GDP print, which was revised lower to reflect a 0.5% overall contraction, more than double the size of the initially-reported shrinkage.

So… what? Why’s it matter now? Well, it may not matter anymore. But it underscores the idea that the US consumer was “under pressure,” as BMO’s Ian Lyngen put it, during the first months of Donald Trump’s second term.

Consumer moods deteriorated dramatically in April (i.e., during the first month of Q2) and while household sentiment subsequently recovered, there’s still a lot of trepidation about the domestic macro read-across from the tariffs, even if Trump ultimately settles on a much lower rate for taxing global trade.

Needless to say, Thursday’s data raises the stakes for Friday’s personal consumption report covering May. Consensus expects to hear that nominal spending expanded at a modest 0.2% clip last month.