US first-quarter GDP revised sharply higher; but consumer spending nearly stalls
Key takeaways
- REUTERS/Tyrone Siu Reuters Thu, June 25, 2026 at 8:43 PM GMT+7 2 min read WASHINGTON, June 25 (Reuters) - The U.S. economy grew faster than previously estimated in the first quarter, but consumer spending almost stalled.
- Gross domestic product increased at an upwardly revised 2.1% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its third estimate of first-quarter GDP on Thursday.
- The economy grew at a 0.5% pace in the October-December quarter.
US first-quarter GDP revised sharply higher; but consumer spending nearly stalls 1 / 12 US first-quarter GDP revised sharply higher; but consumer spending nearly stalls Tourists shop inside a store in Times Square, in New York City, U.S., December 30, 2025. REUTERS/Tyrone Siu Reuters Thu, June 25, 2026 at 8:43 PM GMT+7 2 min read WASHINGTON, June 25 (Reuters) - The U.S. economy grew faster than previously estimated in the first quarter, but consumer spending almost stalled.
Gross domestic product increased at an upwardly revised 2.1% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its third estimate of first-quarter GDP on Thursday. Growth was previously reported to have advanced at a 1.6% pace. Economists polled by Reuters had expected that GDP growth would be unrevised at a 1.6% rate.
The economy grew at a 0.5% pace in the October-December quarter. The 0.5 percentage point upgrade to growth last quarter reflected a downward revision to imports, mostly consumer and capital goods. The boost to growth from lower imports was partially offset by a sharp downgrade to consumer spending, which accounts for more than two-thirds of the economy.