The Commerce Department revised first-quarter GDP growth upward to 2.3 percent on Thursday, slightly above the initial estimate of 2.1 percent, reflecting stronger consumer spending than previously reported. The revision still represents solid growth by historical standards.
Consumer spending, the largest component of the economy, was revised upward to a 2.8 percent annual rate, driven by robust services spending despite a pullback in goods purchases. Business investment rose 5.2 percent, showing continued confidence in the economic outlook.
"The underlying fundamentals remain solid, with consumer spending proving more resilient than expected," said Commerce Secretary Gina Raimondo. "The economy is moderating to a sustainable pace without a significant increase in unemployment."
Economists noted that the revision reflects a shift in spending patterns rather than fundamental weakness. "Consumers are trading down on goods but spending freely on experiences," said Morgan Stanley Senior Economist Ellen Zentner. "That is a normal maturation of the post-pandemic recovery."
The first-quarter growth puts the economy on pace for approximately 2.4 percent annual growth for 2026, above the Federal Reserve's estimated potential growth rate of 1.8 percent. The central bank has indicated that above-trend growth is acceptable as long as inflation continues to moderate.