The United States economy expanded at an annualized rate of 2.1 percent in the first quarter of 2026, according to the third estimate released by the U.S. Bureau of Economic Analysis (BEA). This figure marks a 0.5 percentage point upward revision from the second estimate of 1.6 percent.
Downward Revision in Imports Drives GDP Upgrade
The U.S. Commerce Department attributed the upward revision primarily to a downward revision in imports. Since imports are a subtraction in the calculation of GDP, lower imports boosted the overall growth figure. The department noted that this effect was partly offset by a downward revision to consumer spending.
The BEA reported that the increase in real GDP during the January-March quarter was supported by investment, exports, government spending, and consumer spending. From an industry perspective, growth reflected increases in real value added of 7.5 percent for government, 4.5 percent for private goods-producing industries, and 0.8 percent for private services-producing industries.
Leading and Declining Sectors
The leading contributors to GDP growth were the information sector, the federal government, professional, scientific and technical services, and durable goods manufacturing. These gains were partly offset by declines in retail trade, wholesale trade, and finance and insurance activities.
Real gross domestic income (GDI) increased 1.2 percent in the first quarter, revised upward by 0.3 percentage point from the previous estimate. The average of real GDP and real GDI, a broader measure of economic activity, increased 1.7 percent during the quarter, revised up by 0.4 percentage point.
Consumer Spending and Corporate Profits
Real final sales to private domestic purchasers, which combines consumer spending and gross private fixed investment, increased 1.7 percent in the first quarter. However, this figure was revised down by 0.7 percentage point from the previous estimate.
Corporate profits also improved during the quarter. Profits from current production increased by USD 74.4 billion in the first quarter, revised upward by USD 34 billion from the earlier estimate.
Inflation Measures
On the inflation front, the price index for gross domestic purchases increased 3.6 percent in the first quarter, revised up by 0.1 percentage point. The personal consumption expenditures (PCE) price index rose 4.6 percent, while the core PCE price index, which excludes food and energy, increased 4.4 percent, unchanged from the previous estimate.
