WASHINGTON — The U.S. economy grew at a faster pace in the first quarter than previously estimated, according to revised data released on Thursday by the Commerce Department’s Bureau of Economic Analysis (BEA), though consumer spending was marked down sharply in the final estimate.
The BEA said U.S. gross domestic product increased at an annualized rate of 2.1% in the January-March period, up from the 1.6% rate reported in its second estimate last month. The revision came in the agency’s third and final estimate for first-quarter economic activity.
The agency said the upward revision primarily reflected a lower estimate for imports, particularly consumer and capital goods. Because imports are subtracted in the calculation of GDP, a smaller increase in imports boosted the overall growth figure.
At the same time, the report showed weaker underlying consumer demand than previously reported. Consumer spending growth was revised down to 0.5% from 1.4%, the slowest pace in several years, according to the BEA and economists cited by Reuters. Spending on services, including financial services and international travel, contributed to the downgrade.
“Gross domestic product increased at an upwardly revised 2.1% annualized rate last quarter,” the BEA said in its report. The agency previously reported growth at a 1.6% pace.
Business investment remained a significant source of growth during the quarter. The Associated Press reported that investment in information-processing equipment and other technology-related assets, including artificial intelligence infrastructure, helped support economic activity. Government spending also increased after weakness in the final quarter of 2025.
Another closely watched measure, real final sales to private domestic purchasers, which excludes trade and inventory effects and is viewed as an indicator of underlying demand, was revised down to 1.7% from the previous estimate of 2.4%, the BEA said.
The revised GDP figures follow earlier estimates that showed the economy expanding at a 2.0% annualized rate in the advance report released in April before being lowered to 1.6% in May. The first quarter followed growth of 0.5% in the final three months of 2025.
Corporate profits also increased during the quarter, while gross domestic income was revised higher, according to the BEA. Economists surveyed by Reuters had generally expected no change from the previous 1.6% GDP estimate.
Thursday’s release represents the government’s final estimate of first-quarter GDP. The next major update on U.S. economic growth is scheduled for late July, when the BEA is expected to publish its initial estimate for second-quarter GDP.
