Keep in mind, all the tariff turmoil has been muddying the waters. Despite the contraction, economists expect a rebound to around 2% growth in Q2.

This optimism makes sense when you look closer at what drove the decline: a surge in imports as businesses rushed to stockpile goods ahead of tariffs.

Imports subtract from GDP calculations, but they don’t necessarily signal underlying economic weakness.

The larger impact – on businesses and consumers – will likely be clearer over the coming months.