Government data on Thursday showed the US economy grew slower than initially estimated in the first quarter of 2026, with consumer spending and investment falling, AFP reported.According to the US Commerce Department, gross domestic product (GDP) in the world’s largest economy grew at an annual rate of 1.6 percent during the January-March period. The revised figure was less than the advance estimate of 2 percent released last month.“Real GDP was revised down 0.4 percentage points from the advance estimate, primarily reflecting declines in investment and consumer spending,” the Commerce Department said.Despite the decline, growth remained higher than the 0.5 percent annual rate recorded in the fourth quarter of 2025.The Commerce Department said the increase compared to the previous quarter reflected “an uptick in government spending and exports and investment,” while consumer spending slowed.The data comes amid rising energy prices following the US-Israeli strikes targeting Iran on February 28 and the subsequent disruption around the Strait of Hormuz, a key transit route for oil and fertilizers.Analysts have also pointed to the U.S. economy’s reliance on investments tied to the artificial intelligence sector to support growth.
