US GDP growth revised down to 1.6% in first quarter as consumer spending slows

The US economy grew at a slower pace than initially estimated in the first quarter of 2026, with consumer spending and investment revised downward, government data showed on Thursday, AFP reported.


Gross domestic product (GDP) in the world’s largest economy expanded at an annual rate of 1.6 per cent during the January-March period, according to the US Commerce Department. The revised figure was lower than the advance estimate of 2 per cent released last month.


"Real GDP was revised down 0.4 percentage point from the advance estimate, primarily reflecting downward revisions to investment and consumer spending," the Commerce Department said.


Despite the downward revision, growth remained higher than the 0.5 per cent annual rate recorded in the fourth quarter of 2025.


The Commerce Department said the increase from the previous quarter reflected "upturns in government spending and exports and an acceleration in investment," while consumer spending slowed.


The data comes amid rising energy prices following US-Israeli strikes targeting Iran on February 28 and subsequent disruptions around the Strait of Hormuz, a key transit route for oil and fertilisers.


Analysts have also pointed to the US economy’s reliance on investment linked to the artificial intelligence sector to support growth.

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