BEA: US Q1 GDP Growth at 2.0% vs 2.3% Estimate


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. economy grew at an annualized rate of 2.0% in 
the first quarter of 2026, according to the Bureau of Economic Analysis' (BEA) 
advance estimate on Thursday (4/30).

   This initial reading missed market expectations of a 2.3% growth but marks a 
notable acceleration from the 0.5% expansion recorded in the fourth quarter. 
The rebound suggests the economy is regaining momentum following the 
disruptions caused by the federal government shutdown late last year.

   The BEA reported that the increase in real GDP primarily reflected gains in 
private domestic purchases, consumer spending, residential fixed investment, 
and gross private fixed investment. These improvements were partly offset by 
decreases in residential and nonresidential structures.

   Consumer spending remained the primary driver of growth even as inflationary 
pressures intensified throughout the quarter. The PCE price index rose 4.5% in 
the first quarter, compared with an increase of 2.9% in the fourth quarter. 
Core PCE, which excludes volatile food and energy costs, rose 4.3% in the first 
quarter, up from the 2.7% growth seen in the previous period.

   The U.S. dollar index showed moderate volatility following the release of 
the GDP data, trading 0.527 points lower to 98.30.




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