U.S. Economic Growth Revised Upward to 2.1% in Q1 2026

The U.S. economy experienced a stronger start to 2026 than initially thought, with GDP rising by 2.1% in Q1. This improvement stems from reduced import levels, alongside increased investment, exports, and government spending. However, specific sectors like retail trade and finance saw declines.

The United States economy saw a slight uptick in growth during the first quarter of 2026, with the GDP increasing at an annualized rate of 2.1%, as revealed by the U.S. Bureau of Economic Analysis (BEA). This revised figure marks a 0.5 percentage point increase from previous estimates.

In a statement, the U.S. Commerce Department noted that the upward revision primarily resulted from a decrease in imports, which are subtracted in the GDP calculation. Although this was partially offset by reduced consumer spending, the overall GDP growth was buoyed by increases in investment, exports, and government spending.

Industry-wise, significant contributions came from government activities, private goods production, and services, with notable growth in sectors such as information, federal government operations, and durable goods manufacturing. However, there were setbacks in retail trade, wholesale trade, and finance sectors.

The BEA also reported a 1.2% increase in real gross domestic income (GDI) during the first quarter, adjusted upward by 0.3 percentage point, with the average measure of economic activities reflecting a 1.7% rise. Additionally, corporate profits showed substantial growth, with a USD 74.4 billion increase in the first quarter, a significant revision from previous estimates.

On the inflation front, the price index for gross domestic purchases rose by 3.6%, while the personal consumption expenditures (PCE) price index went up by 4.6%. The core PCE, excluding food and energy, remained steady at a 4.4% increase.