Fact Check: "Consumer spending growth plummeted to just 0.5% in Q1 2023."
What We Know
The claim that "consumer spending growth plummeted to just 0.5% in Q1 2023" appears to be a misstatement regarding the timing and context of the data. The U.S. Bureau of Economic Analysis (BEA) reported that in the first quarter of 2025, real gross domestic product (GDP) decreased at an annual rate of 0.5%, which included a revision of consumer spending growth to just 0.5% for that period (source-1, source-3). However, this data pertains to Q1 2025, not Q1 2023.
In Q1 2023, consumer spending was reported to have grown at a rate of 3.8%, according to the BEA (source-2). This indicates that the claim is referencing the wrong quarter and misrepresents the actual consumer spending growth during Q1 2023.
Analysis
The claim's inaccuracy stems from a confusion between different quarters. The reported consumer spending growth of 0.5% is accurate for Q1 2025, as confirmed by multiple sources, including the BEA and various news outlets (source-1, source-6). However, the assertion that this figure applies to Q1 2023 is incorrect.
The reliability of the sources used to clarify this situation is high. The BEA is a government agency responsible for economic data, and its reports are widely regarded as authoritative. News outlets like Reuters and CNN also provide corroborative reporting based on BEA data, enhancing the credibility of the information presented.
Conclusion
The claim that "consumer spending growth plummeted to just 0.5% in Q1 2023" is False. The 0.5% figure applies to Q1 2025, not Q1 2023, where consumer spending actually grew by 3.8%. This misrepresentation of data undermines the accuracy of the claim.
Sources
- Gross Domestic Product, 1st Quarter 2025 (Third Estimate) - BEA
- Consumer Spending | U.S. Bureau of Economic Analysis (BEA) - BEA
- US first-quarter GDP revised lower on tepid consumer spending - Reuters
- GDP data shows U.S. economy shrank more than previously thought in Q1 2025 - CBS News
- The US economy shrank much faster in the first quarter than previously reported - CNN
