By MICHELLE CHAPMAN, Associated Press Business Writer

Dollar General set a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores and off-price retailers amid economic uncertainty.

The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Donald Trump’s trade wars dented spending by businesses. Consumer spending slowed sharply.

For the period ended May 2, Dollar General’s sales climbed 5% to $10.44 billion from $9.91 billion. That’s better than the $10.29 billion that Wall Street was expecting, according to a poll by Zacks Investment Research.

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Sales at stores open at least a year, a key indicator of a retailer’s health, increased 2.4%.

Customer traffic dipped 0.3%, but the average transaction amount rose 2.7%.

Shares jumped more than 10% before the opening bell Tuesday and shares of rival Dollar Tree, which reports its quarterly performance Wednesday, rose 4%.

Dollar General, based in Goodlettsville, Tennessee, earned $391.9 million, or $1.78 per share, in the quarter, blowing past the $1.47 per share that Wall Street had expected, as well as the $363.3 million profit it recorded during the same period last year.

Dollar General said that even though it topped its own expectations, there is a lot of uncertainty about how tariffs will impact its business and its customers for the remainder of the year.

People are trading down, or visiting bargain chains, as they seek to extend their spending, but lower-income Americans are much more vulnerable.

“While the macro backdrop continues to be broadly unhelpful, with core lower income consumers still facing considerable pressure on their finances, this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs,” Neil Saunders, managing director of GlobalData, said in a statement.

The company is now projecting 2025 earnings in a range of about $5.20 to $5.80 per share. Its prior earnings forecast was for approximately $5.10 to $5.80 per share.

Analysts surveyed by FactSet are looking for earnings of $5.61 per share.

Sales are expected to climb approximately 3.7% to 4.7%. Dollar General previously predicted sales growth of about 3.4% to 4.4%. Same-store sales growth is now expected to be approximately 1.5% to 2.5% up from a prior outlook for about 1.2% to 2.2% growth.

MILWAUKEE (AP) — A Wisconsin man is facing charges accusing him of forging a letter threatening President Donald Trump’s life in an effort to get another man who was a potential witness against him in a criminal case deported.

Prosecutors said in a criminal complaint filed Monday that Demetric D. Scott was behind a letter sent to state and federal officials with the return address and name of Ramón Morales Reyes.

Scott was charged Monday with felony witness intimidation, identity theft and two counts of bail jumping. His attorney, Robert Hampton III, didn’t immediately return an email from The Associated Press seeking comment.

FILE – This image provided by the Department of Homeland Security shows a handwritten letter that Homeland Security Secretary Kristi Noem claimed an immigrant threatened the life of President Donald Trump. (Department of Homeland Security via AP,File)

Immigration agents arrested Morales Reyes, 54, on May 21 after he dropped his child off at school in Milwaukee. Homeland Security Secretary Kristi Noem announced the arrest, saying he had written a letter threatening to kill Trump and would “self-deport” to Mexico. The announcement, which also was posted by the White House on its social media accounts, contained an image of the letter as well as a photo of Morales Reyes.

But the claim started to unravel as investigators talked to Morales Reyes, who doesn’t speak English fluently, and obtained a handwriting sample from him that was different from the handwriting in the letters, according to court documents.

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Morales Reyes is listed as a victim in the case involving Scott, who is awaiting trial in Milwaukee County Jail on armed robbery and aggravated battery charges. The trial is scheduled for July.

Law enforcement officers listened to several calls Scott made from the jail in which he talked about letters that needed to be mailed and a plan to get someone picked up by Immigration and Customs Enforcement so Scott’s trial could get dismissed, according to the criminal complaint. He also admitted to police that he wrote the letters, documents said.

Morales Reyes works as a dishwasher in Milwaukee, where he lives with his wife and three children. He had recently applied for a U visa, which is for people in the country illegally who become victims of serious crimes, said attorney Kime Abduli, who filed that application.

Abduli told the Milwaukee Journal Sentinel on Monday that she was glad Morales Reyes was being cleared of any involvement in the letter writing.

His deportation defense lawyer, Cain Oulahan, wrote in an email Monday night that the main focus now is to secure Morales Reyes’ release from custody and the next step will be to pursue any relief he may qualify for in immigration court.

“While he has a U visa pending, those are unfortunately backlogged for years, so we will be looking at other options to keep him here with his family, which includes his three US citizen children,” Oulahan wrote.

VIENNA (AP) — Arnold Schwarzenegger has a message for environmentalists who despair at the the approach of President Donald Trump’s administration: “Stop whining and get to work.”

The new U.S. administration has taken an ax to Biden-era environmental ambitions, rolled back landmark regulations, withdrawn climate project funding and instead bolstered support for oil and gas production in the name of an “American energy dominance” agenda.

Schwarzenegger, the former Republican governor of California, has devoted time to environmental causes since leaving political office in 2011.

He said Tuesday he keeps hearing from environmentalists and policy experts lately who ask, “What is the point of fighting for a clean environment when the government of the United States says climate change is a hoax and coal and oil is the future?”

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Schwarzenegger told the Austrian World Summit in Vienna, an event he helps organize, that he responds: “Stop whining and get to work.”

He pointed to examples of local and regional governments and companies taking action, including his own administration in California, and argued 70% of pollution is reduced at the local or state level.

“Be the mayor that makes buses electric; be the CEO who ends fossil fuel dependence; be the school that puts (up) solar roofs,” he said.

“You can’t just sit around and make excuses because one guy in a very nice White House on Pennsylvania Avenue doesn’t agree with you,” he said, adding that attacking the president is “not my style” and he doesn’t criticize any president when outside the U.S.

“I know that the people are sick and tired of the whining and the complaining and the doom and gloom,” Schwarzenegger said. “The only way we win the people’s hearts and minds is by showing them action that makes their lives better.”

By PAUL WISEMAN, Associated Press Economics Writer

WASHINGTON (AP) — U.S. economic growth will slow to 1.6% this year from 2.8% last year as President Donald Trump’s erratic trade wars disrupt global commerce, drive up costs and leave businesses and consumers paralyzed by uncertainty.

The Organization for Economic Cooperation and Development forecast Tuesday that the U.S. economy — the world’s largest — will slow further to just 1.5% in 2026. Trump’s policies have raised average U.S. tariff rates from around 2.5% when he returned to the White House to 15.4%, highest since 1938, according to the OECD. Tariffs raise costs for consumers and American manufacturers that rely on imported raw materials and components.

World economic growth will slow to just 2.9% this year and stay there in 2026, according to the OECD’s forecast. It marks a substantial deceleration from growth of 3.3% global growth last year and 3.4% in 2023.

FILE – Shipping containers are seen ready for transport at the Guangzhou Port in the Nansha district in southern China’s Guangdong province, April 17, 2025. (AP Photo/Ng Han Guan, File)

The world economy has proven remarkably resilient in recent years, continuing to expand steadily — though unspectacularly — in the face of global shocks such as the COVID-19 pandemic and Russia’s invasion of Ukraine.

But global trade and the economic outlook have been clouded by Trump’s sweeping taxes on imports, the unpredictable way he’s rolled them out and the threat of retaliation from other countries.

Reversing decades of U.S. policy in favor of freer world trade, Trump has levied 10% taxes — tariffs — on imports from almost every country on earth along with specific duties on steel, aluminum and autos. He’s also threatened more import taxes, including a doubling of his tariffs on steel and aluminum to 50%.

Without mentioning Trump by name, OECD chief economist Álvaro Pereira wrote in a commentary that accompanied the forecast that “we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment.”

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Adding to the uncertainty over Trump’s trade wars: A federal court in New York last week blocked most of Trump’s tariffs, ruling that he’d overstepped his authority in imposing them. Then an appeals court allowed the Trump administration to continue collecting the taxes while appeals worked their way through the U.S. courts.

China — the world’s second-biggest economy — is forecast to see growth decelerate from 5% last year to 4.7% in 2025 and 4.3% in 2026. Chinese exporters will be hurt by Trump’s tariffs, hobbling an economy already weakened by the collapse of the nation’s real estate market. Some of the damage will be offset by help from the government: Beijing last month outlined plans to cut interest rates and encourage bank lending as well as allocating more money for factory upgrades and elder care, among other things.

The 20 countries that share the euro currency will collectively see economic growth pick up from 0.8% last year to 1% in 2025 and 1.2% next year, the OECD said, helped by interest rate cuts from the European Central Bank.

The Paris-based OECD, comprising 38 member countries, works to promote international trade and prosperity and issues periodic reports and analyses.