Financial News: U.S. Economy Grows Less Than Previously Estimated In

U.S. Economy Grows Less Than Previously Estimated In Q1

05/28/2026 - 11:23:00 (RTTNews)

(RTTNews) - Revised data released by the Commerce Department on Thursday showed the U.S. economy grew by less than previously estimated in the first quarter of 2026.

The report said real gross domestic product shot up by 1.6 percent in the first quarter, reflecting a downward revision from the previously reported 2.0 percent surge.

The downward revision came as a surprise to economists, who had expected jump in GDP to be upwardly revised to 2.1 percent.

The Commerce Department said the slower than previously estimated growth primarily reflected downward revisions to investment and consumer spending.

The downwardly revised GDP growth in the first quarter still reflects an acceleration compared to the 0.5 percent increase in the fourth quarter of 2025.

The report said the faster growth reflected upturns in government spending and exports and an acceleration in investment that were partly offset by a deceleration in consumer spending.

The Commerce Department also said its personal consumption expenditures (PCE) price index increased 4.5 percent in the first quarter, unchanged from the preliminary estimate.

Meanwhile, the surge by the core PCE price index, which excludes food and energy prices, was upwardly revised to 4.4 percent from 4.3 percent.

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