US EditionU.S. economy grew 2% from January-March, recovering from federal shutdown
Business investment rose 8.7% as AI-related spending helped offset slower consumer demand and higher inflation, the Commerce Department said.
- On Thursday, the Commerce Department reported the U.S. economy grew at a 2% annualized rate in the first quarter, rebounding sharply from 0.5% growth in the fourth quarter of 2025.
- Rebounding federal government spending at 9.3% annual growth and an 8.7% surge in business investment—driven by artificial intelligence buildout—powered the expansion, though consumer spending slowed to 1.6% from 1.9%.
- Rising energy prices fueled by Iran's blockade of the Strait of Hormuz pushed the Core Personal Consumption Expenditures Price Index to 3.2%, matching expectations yet signaling persistent inflationary pressure.
- Federal Reserve officials held benchmark interest rates at 3.50%-3.75% on Wednesday, citing high uncertainty from the conflict and rising inflation concerns, with the decision marked by contentious debate among officials.
- Economists warn of a 'split-screen economy' where AI-driven corporate gains mask struggles for middle-income households facing high gas costs, complicating forecasts as the Iran war's duration remains uncertain.
118 Articles
118 Articles
Fox figures repeatedly claimed the economy would grow at a 5% pace thanks to Trump. It actually grew just 2% in the first quarter of 2026.
Fox personalities spent the first quarter of 2026 repeatedly telling viewers that the economy was growing robustly or predicting growth at up to a 5% annualized rate thanks to President Donald Trump’s purported improvements to the American economy during his second term. According to the April 30 advance estimate from the Bureau of Economic Analysis, real gross domestic product growth for the first quarter of 2026 came in at just 2% — yet Fox’s …
U.S. Economy Grew 2% in First Quarter, But Iran War Clouds Outlook
The U.S. economy accelerated at the start of 2026, expanding at a modest 2% pace from January through March after recovering from last fall’s 43-day federal government shutdown. But the outlook is clouded by the Iran war. The Commerce Department reported Thursday that gross domestic product — the nation’s output of goods and services
First Quarter Economic Data Shows Stable U.S. Economy and Strong Job Market
Several key economic reports were released today highlighting a broad and strong U.S. economy with a very strong labor market. ♦ The first quarter Gross Domestic Product (GDP) was released by the Bureau of Economic Analysis (BEA) [DATA HERE] The first estimate is for growth at 2.0 percent. At first glance that is lower than […] The post First Quarter Economic Data Shows Stable U.S. Economy and Strong Job Market appeared first on The Last Refuge.
U.S. Economy Grew 2 Percent as Business Investment Surged Following Tax Cuts
The U.S. economy accelerated at the start of the year, lifted by a sharp increase in business investment in equipment and intellectual property. Gross domestic product, adjusted for inflation, expanded at a 2.0 percent annual rate in the first quarter, The post U.S. Economy Grew 2 Percent as Business Investment Surged Following Tax Cuts appeared first on Breitbart.
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