U.S. Q1 GDP Growth Revised Down to 0.2% in Final Estimate

The U.S. economy grew at a 0.2% annualized rate in the first quarter, the Commerce Department reported on May 28, 2026, down from the 0.4% pace estimated last month. The downward revision in the third estimate of gross domestic product reflected weaker consumer spending and business investment than previously thought. The core personal consumption expenditures price index, a key inflation gauge, was revised lower to 3.5%, from 3.6%. The softer growth and inflation figures bolstered expectations that the Federal Reserve may begin cutting interest rates later this year. U.S. stock futures edged higher following the report, while the yield on the 10-year Treasury note slipped to 4.12%. The data adds to signs of an economic slowdown after the Fed held rates steady at its May meeting.