The US Bureau of Economic Analysis (BEA) reported that real GDP grew at an annual rate of 1.6% in the first quarter of 2026, up from 0.5% in the previous quarter, showing an acceleration in economic activity. Growth was driven by increases in exports, investment, consumer spending, and government spending, while rising imports acted as a drag on GDP.

The BEA noted that the estimate was revised downward from the initial reading, mainly due to weaker-than-expected investment and consumer spending. Inflation remained elevated, with the PCE price index rising 4.5%, while broader price measures also showed continued upward pressure.

Real GDP and Related Measures
[Percent Change (SAAR) from 2025:Q4 to 2026:Q1]
Advance Estimate Second Estimate
Real GDP 2.0 1.6
Current-dollar GDP 5.6 5.1
Real final sales to private domestic purchasers 2.5 2.4
Real GDI … 0.9
Average of real GDP and real GDI … 1.3
Gross domestic purchases price index 3.6 3.5
PCE price index 4.5 4.5
PCE price index excluding food and energy 4.3 4.4

RELATED ARTICLESMORE FROM AUTHOR