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US GDP up 2%, boosted by AI investment
Business Standard
|May 01, 2026
United States (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 (GDP) increased an annualised 2 per cent 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 (BEA).
Consumer spending, which comprises about two-thirds of economic activity, increased at a better-than-expected 1.6 per cent rate, driven by demand for services including healthcare and financial services.
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