US Q1 GDP Revised Lower in Third Estimate, PCE Growth Revised Down

08:56 AM EDT, 06/26/2025 (MT Newswires) -- US economic growth, measured by gross domestic product, was revised down to a 0.5% decrease in Q1 from a 0.2% drop in the previous estimate, compared with expectations for no revision in a survey compiled by Bloomberg as of 7:45 am ET.

GDP rose by 2.4% in Q4.

Personal consumption expenditures were revised down to a 0.5% gain from the 1.2% increase in the previous estimate and were well below a 4% gain in Q4.

There were upward revisions to net exports and government spending, but downward revisions to residential fixed investment and private inventories. Nonresidential fixed investment was unrevised.

The GDP price index was revised up to a 3.8% increase from the previous estimate of a 3.7% gain and overall PCE and core PCE price measures were also revised up by 0.1 percentage point each to 3.7% and 3.5%, respectively.

The advance estimate of Q2 GDP is scheduled to be released on July 30.

The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.

The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.

Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

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