The US economy grew at a 2% annualized rate in the first quarter, an initial estimate from the Bureau of Economic Analysis showed, with business investment in artificial intelligence doing much of the lifting, according to Bloomberg.
The details
- Inflation-adjusted GDP rose 2% in Q1, based on an initial BEA estimate, per Bloomberg.
- Businesses invested heavily in AI, boosting growth, the Wall Street Journal reported.
- Growth improved after late-2025 activity was limited by the longest-ever federal government shutdown, per Bloomberg.
- Consumer spending growth softened, which kept overall growth from meeting economists’ expectations, according to the WSJ.
What changed. Growth leaned more on business investment than household demand. The economy didn’t expand as fast as economists expected because consumers tapped the brakes, per the WSJ.
Why it matters. The BEA’s figure is an initial estimate, and revisions are coming. Bloomberg notes the first read put AI-fueled capex front and center after shutdown distortions in late 2025, per Bloomberg.
What holds next: whether households pick spending back up or business investment keeps carrying more of the load.
