BEA reports sharpest corporate profit drop since 2020

Corporate profits fell by 118 billion USD in Q1 2025, marking the sharpest decline since Q4 2020. This downturn reflects major economic challenges.

The GDP decreased at an annual rate of 0.2% in Q1 2025, contrasting sharply with a 2.4% increase in Q4 2024. Rising imports contributed significantly to this contraction.

Trade uncertainties and reduced federal spending of 5.1% have led corporations to adopt a cautious approach in their financial forecasts for 2025.

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