2026.06.2512:33:17UTC+00US GDP Growth Rate Revised Higher in Q1

The US economy grew at an annualized rate of 2.1% in Q1 2026, revised up from 1.6% in the second estimate and well above the 0.5% pace recorded in Q4 2025.

Net trade weighed less on growth than previously estimated, subtracting 0.37 percentage points from GDP instead of 1.25 percentage points. This revision reflected slower import growth (11.8% vs 21.1% previously) and a solid 10.9% increase in exports (revised from 13.1%).

Gross private domestic investment rose 7.9%, up from a prior estimate of 7%. Within business investment, spending on equipment surged 15.8% (slightly below the previously reported 17.2%), while investment in intellectual property products increased 13.8%, revised up from 11.6%. In contrast, structures investment declined 4.7% (vs -5.4% previously), and residential investment fell 7.8%, a deeper drop than the earlier estimate of -6.2%.

Consumer spending increased just 0.5%, markedly below the previously reported 1.4% gain. The slowdown was driven by services, where spending growth eased to 0.5% from 1.8%, while goods spending remained weak but little changed, rising 0.5% versus 0.4% in the prior estimate.

Government spending rose 4.4%, unchanged from the previous estimate, rebounding from a 5.6% contraction in the prior quarter as activity picked up following the end of the government shutdown.