US GDP Growth Rate Revised Lower in Q1

2026-05-28 12:32 By Joana Taborda 1 min. read

The US economy expanded an annualized 1.6% in Q1 2026, up from 0.5% in Q4 but below 2% in the advance estimate, primarily reflecting downward revisions to investment and consumer spending.

Consumer spending rose 1.4%, less than 1.6% in the advance estimate.

The rise was mainly supported by demand for services (1.8%) while goods remained subdued (0.4%).

Also, gross private domestic investment rose 7%, below the 8.7% reported in the advance estimate.

Business investment in equipment surged 17.2%, while spending on intellectual property products increased 11.6%.

In contrast, investment in structures fell 5.4%, and residential investment declined 6.2%.

Meanwhile, net trade contributed negatively to GDP (-1.25 pp), as exports rose by 13.1% (vs 12.9% in the first estimate) while imports jumped 21.1% (vs 21.4%).

Government spending rose 4.4%, in line with the initial estimate, recovering from a 5.6% contraction in Q4, as activity resumed following the end of the government shutdown.



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US GDP Growth Rate Revised Lower in Q1
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