US Q1 GDP Revised Down to 1.6% as Profits Slow Sharply

The BEA’s second estimate cut first-quarter US GDP growth to a 1.6% annualized pace from the prior 2.0% reading, citing weaker inventory investment and softer consumer spending now at 1.4%. Corporate profits decelerated sharply to a $40.4 billion gain from $246.9 billion in Q4, while PCE inflation stayed elevated at 4.5% and core PCE at 4.4%. Markets registered only a muted pre-market dip in broad ETFs, though analysts flagged rising growth uncertainty and potential further drag from Middle East tensions ahead of the June 25 third estimate.