Below Market Expectations, US GDP Grows 2.0% in Q1 2026
US gross domestic product (GDP) grew at an annualized rate of 2.0% in the first quarter of 2026, according to preliminary estimates. This figure is up from 0.5% in the previous quarter, but lower than market expectations of 2.3%.
The acceleration compared to Q4 2025 was primarily supported by increases in government spending and exports, as well as faster investment growth. However, this support was partially offset by a slowdown in consumer spending.
At the same time, imports increased, which, in accounting terms, could reduce the contribution to GDP growth. The combination of slowing consumption and rising imports means that the pace of expansion does not fully reflect the strength of domestic demand.
For the market, this below-consensus result tends to reinforce the focus on the quality of growth and its resilience going forward: whether consumption will strengthen again or remain a weak point. Market participants will generally monitor the continued trend in consumer spending, the direction of investment, and trade dynamics (exports and imports) in subsequent data releases. (gn)*
Source: Newsmaker.id
