US Q1 GDP revised upward, but consumer spending nearly flat

The revised US GDP figure for the first quarter of 2026 came in higher than the initial estimate, suggesting the economy held up better than feared at the start of the year. Yet the underlying details paint a more cautious picture: consumer spending, which accounts for roughly two-thirds of US economic output, nearly stalled. This points to mounting pressure on households from elevated interest rates and persistent inflation. For investors, the report sends a mixed message — headline growth looks solid, but weakening consumer demand could weigh on corporate earnings in the months ahead. Markets will be watching retail sales and employment data closely for further clues.