The U.S. economy shrank at a faster pace in the beginning of the year than originally reported, as new economic data showed a more significant drop in consumer spending.

The U.S. economy contracted a bit faster than previously thought in the first quarter amid tepid consumer spending, underscoring the distortions caused by the Trump administration's aggressive tariffs on imported goods.

US consumer spending grew in the first quarter at the weakest pace since the onset of the pandemic on a sharp deceleration in outlays for a variety of services.