The U.S. economy grew at a 2% annualized rate in the first quarter, helped by a surge in artificial intelligence investment, according to the Bureau of Economic Analysis. That was faster than the shutdown-hit end to 2025, but still below economists’ expectations.
AI did the lifting. The first-quarter GDP report said business investment rose on heavy AI spending, while consumer spending grew more slowly.
That split matters because household demand still drives most of the economy. The move in investment kept growth positive, but it did not fully offset the softer pace from shoppers.
Shutdown hangover
The quarter also rebounded after the longest-ever federal government shutdown slowed growth in the closing months of 2025. Bloomberg said the economy’s start to 2026 was another sign of resilience after that hit.
- GDP increased 2% in the first quarter, according to the BEA’s initial estimate.
- WSJ said the economy grew on heavy AI investment but came in below economists’ forecasts.
- Consumer spending slowed at the same time, leaving households as the part of the economy to watch next.
The next GDP read will show whether that AI-led lift can keep carrying growth, or whether weaker consumers start to pull the number back down.
