U.S. economic growth accelerated in early 2026, but inflation gauges in the GDP report firmed, according to the Bureau of Economic Analysis’ advance estimate for the first quarter.

**Headline numbers (Q1 2026, advance):**

- Real GDP: **+2.0%** (annual rate) vs **+0.5%** in Q4 2025

- Real final sales to private domestic purchasers: **+2.5%**

- Gross domestic purchases price index: **+3.6%**

- PCE price index: **+4.5%**

- Core PCE (ex food & energy): **+4.3%**

BEA said the main contributors to the rise in real GDP were **investment**, **exports**, **consumer spending**, and **government spending**. Imports also increased, which subtracts from GDP growth in the national accounts framework.

**Market context:** For equities, faster growth can support revenue expectations, but an uptick in inflation measures can keep focus on the interest-rate path and discount rates applied to future earnings—particularly for growth stocks.

The next GDP update—**second estimate** and corporate profits for Q1—will be released **May 28, 2026**.