US Q1 GDP Unexpectedly Revised Higher, PCE Growth Revised Down

08:55 AM EDT, 06/25/2026 (MT Newswires) -- US economic growth, measured by gross domestic product, rose by 2.1% in Q1, revised up sharply from a 1.6% gain in the second estimate, above expectations for no revision in a survey compiled by Bloomberg as of 7:30 am ET.

GDP rose by 0.5% in Q4.

Personal consumer expenditures rose by 0.5% after a 1.9% gain in Q4, a large downward revision from a 1.4% increase in the second estimate.

There were positive contributions from net exports, change in private inventories, nonresidential fixed investment and government spending that more than offset a downward adjustment to residential fixed investment.

The GDP price index rose by 3.6%, revised up from a 3.5% gain in the second reading after a 3.7% increase in the previous quarter, with the overall PCE price reading revised higher and the core PCE price measure unrevised.

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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