The second estimate of Q1 GDP showed a 1.6% gain after a 0.5% increase in the previous quarter, but a downward adjustment from a 2% gain in the advance estimate.
Personal spending growth was revised down 1.4% from a 1.6% increase in the advance estimate, below a 1.9% increase in the previous quarter.
There were also negative adjustments to nonresidential fixed investment and inventories that were partially offset by upward revisions to residential fixed investment and net exports. Government spending growth was unrevised.
The GDP price index rose by 3.5%, revised down from a 3.6% gain in the advance reading, with the overall PCE price reading unrevised at a 4.5% gain and core PCE price reading revised up slightly to a 4.4% increase from 4.3% in the advance estimate.
Personal income was flat in April, below expectations after a 0.5% gain, while personal consumption expenditures rose by an as-expected 0.5% in April after a 1% increase in March.
After an adjustment for a 0.4% increase in the PCE price index, real consumption was up 0.1% in April after a 0.3% increase in March. The year-over-year rate for the overall price index accelerated to 3.8% from 3.5%
Core PCE prices rose by 0.2% in the month after a 0.3% gain while the year-over-year rate accelerated to 3.3% from 3.2%.
Durable goods new orders rose by 7.9% in April, while shipments increased by 0.5%.
Excluding transportation, new orders were still up 1.1%, and shipments rose by 0.5%, suggesting underlying strength in demand.
New-home sales fell to a 622,000 annual rate in April from a 663,000 rate in March and was down 11.3% from the 701,000 pace in April 2025.
Initial jobless claims increased by 5,000 to 215,000 in the week ended May 23, lifting the four-week moving average by 6,250 to 209,000.
Insured claims rose by 15,000 to 1.786 million in the employment survey week ended May 16. Insured claims were at a level of 1.776 million in the employment survey week ended April 18.
Natural gas stocks rose by 92 billion cubic feet to 2.483 trillion cubic feet in the week ended May 22, up 0.9% from a year earlier and 6.2% higher than the seasonal average for the current week over the previous five years.
Total crude oil inventories fell by 12.4 million barrels in the week ended May 22, with commercial oil inventories down 3.3 million barrels and stocks in the US Strategic Petroleum Reserve down 9.1 million barrels. Gasoline inventories and distillate inventories both decreased last week.
The Q2 GDP nowcast estimate from the Atlanta Fed is for a 3.8% gain, revised down from the previous estimate of a 4.3% gain.