US Q1 2026 GDP Revised to 2.1% Amid Weak Domestic Demand

The U.S. Commerce Department revised first‑quarter 2026 gross domestic product (GDP) growth upward to an annualized 2.1%, up from earlier estimates. Despite the modest rebound, underlying domestic demand showed significant weakness. Consumer spending growth was downgraded to 0.5% annualized – the slowest pace since Q1 2022 – and real final sales to private purchasers fell to a three‑year low.

May personal consumption expenditures (PCE) data indicated that inflation remains persistent, especially in core services, while energy price spikes boosted overall price growth. The data prompted a modest decline in Treasury yields and lowered expectations for a July Federal Reserve rate hike, suggesting policymakers may adopt a wait‑and‑see stance.

In parallel, cryptocurrency markets displayed little reaction to the GDP release; major digital assets such as Bitcoin and Ethereum traded largely flat, underscoring a growing decoupling of crypto price movements from short‑term macroeconomic news.