ISTANBUL: The US economy grew at a stronger pace than previously estimated during the first quarter of 2026, according to updated figures released by the Bureau of Economic Analysis (BEA) on Thursday.
The revised data showed that the nation’s gross domestic product (GDP) expanded at an annualized rate of 2.1% between January and March, significantly higher than the earlier estimate of 1.6%. The improvement reflects adjustments in trade data, particularly a reduction in reported imports, which are subtracted when calculating GDP.
Despite the upward revision, consumer spending—the largest driver of the US economy—was adjusted lower, partially offsetting gains from the trade-related changes. Nevertheless, overall economic activity remained stronger than initially reported.
The latest figures mark a notable acceleration from the fourth quarter of 2025, when the economy grew by just 0.5%. Economists view the stronger first-quarter performance as evidence of continued resilience despite concerns over inflation, interest rates, and global economic uncertainty.
Investment activity, exports, government expenditures, and household spending all contributed positively to economic growth during the quarter. Imports also increased, though revisions to import data ultimately boosted the GDP calculation.
Industry-level data revealed broad-based growth across key sectors of the economy. Government-related activities recorded the strongest gains, with real value added rising 7.5%, followed by private goods-producing industries at 4.5%. Private service-producing industries also posted growth, increasing 0.8%.
Among individual sectors, information services, federal government operations, professional and technical services, and durable goods manufacturing emerged as the primary drivers of economic expansion. However, weaker performance in retail trade, wholesale trade, finance, and insurance tempered some of the overall gains.
The report also showed that real final sales to private domestic purchasers—a key measure of underlying domestic demand—rose 1.7% during the quarter, though this figure was revised lower from previous estimates. Meanwhile, real gross domestic income increased 1.2%, while the average of GDP and gross domestic income advanced 1.7%, indicating continued economic growth across multiple indicators.
The revised data suggests the US economy entered 2026 on firmer footing than initially believed, supported by investment activity, government spending, and export growth.
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