FX.co ★ US GDP Growth Rate Revised Lower in Q1

The US economy grew at an annualized rate of 1.6% in Q1 2026, up from 0.5% in Q4 but below the 2% pace reported in the advance estimate, largely due to downward revisions to investment and consumer spending. Consumer spending increased 1.4%, compared with 1.6% previously estimated. The gain was driven mainly by services, which rose 1.8%, while spending on goods remained weak at 0.4%.

Gross private domestic investment climbed 7.0%, short of the 8.7% reported in the initial estimate. Within business investment, spending on equipment jumped 17.2% and outlays on intellectual property products advanced 11.6%. By contrast, investment in structures declined 5.4%, and residential investment fell 6.2%.

Net exports weighed on overall growth, subtracting 1.25 percentage points from GDP, as exports increased 13.1% (slightly above the initial 12.9% estimate) while imports surged 21.1% (marginally below 21.4% previously reported).

Government spending rose 4.4%, matching the advance estimate and rebounding from a 5.6% decline in Q4, as activity picked up following the end of the government shutdown.