US Q1 GDP lifted to 2.1pc following sharp downward revision to imports

(Sharecast News) - US economic growth was revised higher in the first quarter, with real gross domestic product now estimated to have increased at an annualised 2.1% pace, according to the Bureau of Economic Analysis, following 0.5% growth in the final quarter of 2025. The upward revision of 0.5 percentage points from the second estimate primarily reflected a downward revision to imports, which subtract from GDP, partly offset by a softer reading on consumer spending. The BEA said first‑quarter growth was supported by investment, exports, government spending and consumer spending, while imports increased.

From an industry perspective, real value added rose 7.5% in government, 4.5% in private goods‑producing industries and 0.8% in private services, while the strongest contributors were information, the federal government, professional and technical services, and durable goods manufacturing. Retail trade, wholesale trade, and finance and insurance acted as the main drags.

Regionally, GDP increased in 46 states and the District of Columbia, ranging from 4.5% growth in Washington state to a 1.6% decline in South Dakota.

The BEA said the revision largely reflected updated trade data from its annual International Transactions Accounts update, while the downward revision to consumer spending was driven by weaker financial services and insurance, based on new Census Bureau survey data, and lower spending on other services, including international travel.





Reporting by Iain Gilbert at Sharecast.com