USA: GDP Growth Rate Revised Higher in Q1.

The US economy expanded an annualized 2.1% in Q1 2026, revised up from 1.6% in the second estimate, and above 0.5% in Q4 2025. The contribution from net trade was less negative than initially estimated (-0.37 pp vs -1.25 pp), as imports growth was revised lower (11.8% vs 21.1%) and exports rose 10.9% (vs 13.1%). In addition, gross private domestic investment increased 7.9%, higher than 7% in the previous estimate. Business investment in equipment surged 15.8% (vs 17.2%), and spending on intellectual property products went up 13.8% (vs 11.6%). In contrast, investment in structures fell 4.7% (vs -5.4%), and residential declined 7.8% (vs -6.2%). Meanwhile, consumer spending rose 0.5%, well below 1.4% previously reported, led by a big slowdown in services demand (0.5% vs 1.8%) while goods remained subdued (0.5% vs 0.4%). Government spending was up 4.4%, in line with the previous estimate, recovering from a 5.6% contraction, as activity resumed following the end of the government shutdown.