U.S. First-Quarter GDP Revised Up to 2.1%, Consumer Spending Slows to 0.5%

According to the U.S. Commerce Department on June 25, first-quarter GDP annualized growth was revised up to 2.1% from 1.6%, exceeding market expectations. However, consumer spending growth slowed to just 0.5%, the weakest in four years, indicating a shift in economic support sources.

Corporate equipment investment remained robust at 15.8% growth, driven by artificial intelligence-related spending, offsetting weak consumer demand. The downward revision in import data, particularly capital goods and consumer goods, contributed positively to the GDP upward revision, while consumer spending weakness partly offset this gain.