US Economy Grows Solid 2%, Boosted by Surging AI Investment (1)

US economic growth accelerated at the start of the year, bolstered by a massive AI-driven upswing in business investment.

Inflation-adjusted gross domestic product increased an annualized 2% in the first quarter after the longest-ever federal government shutdown limited growth in the closing months of 2025, according to an initial estimate issued Thursday by the Bureau of Economic Analysis.

Consumer spending, which comprises about two-thirds of economic activity, increased at a better-than-expected 1.6% rate, driven by demand for services including healthcare and financial services. Business outlays on equipment and structures advanced 10.4%, the fastest pace in almost three years and ...