BEA: US Q1 GDP Growth at 2.1% vs 1.6% Estimate


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. economy grew at an annualized rate of 2.1% in 
the first quarter of 2026, according to the Bureau of Economic Analysis' (BEA) 
third and final estimate released on Thursday (6/25).

   This final reading beat market expectations of a 1.6% growth rate and marks 
an acceleration from the 0.5% expansion recorded in the fourth quarter. The 
upward revision suggests a stronger economic rebound from the late-2025 federal 
government shutdown than previously calculated, despite underlying shifts in 
domestic activity.

   The BEA reported that the 0.5 percentage point increase from the second 
estimate primarily reflected a downward revision to imports, which act as a 
subtraction in GDP calculations. However, this boost was partially offset by a 
downward revision to consumer spending, with real final sales to private 
domestic purchasers downshifting to a 1.7% growth rate compared to the 
previously reported 2.4%.

   On the inflation front, price pressures remained elevated and sticky through 
the start of the year. The PCE price index was revised slightly higher to a 
4.6% increase for the first quarter, up from 2.9% in the fourth quarter, while 
the core PCE price index, excluding volatile food and energy costs, held steady 
at an elevated 4.4% growth rate.




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