US first-quarter GDP revised down to just 1.6%

(Sharecast News) - The US economy grew less than originally estimated in the first quarter of 2026, according to amended figures out on Thursday from the Bureau of Economic Analysis, with both investment and consumer spending figures revised lower. US gross domestic product increased at a year-on-year rate of 1.6% over the first three months, marking an acceleration from the 0.5% growth registered in the fourth quarter of 2025.

However, this was well below the 2.0% growth initially reported at the end of April - which itself was below the 2.3% consensus forecast at the time of release.

"Compared to the fourth quarter of 2025, the acceleration in real GDP in the first quarter of 2026 reflected upturns in government spending and exports and an acceleration in investment that were partly offset by a deceleration in consumer spending. Imports turned up," the BEA said in the second estimate report.

Consumer spending rose at an annualised rate of just 1.4% in the first quarter, below the 1.6% initially stated, while gross private investment growth was revised down to 7% from 8.7%.

The BEA releases three sequential estimates for quarterly GDP figures, with third and final estimate released in a month's time.