GDP rose at 2% annual rate in 1st quarter
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First quarter GDP grew at 2%, slightly below the expected 2.3%, as equipment investment in AI and computers along with consumer spending led growth.
The U.S. economy grew at a 2% annualized rate in Q1 2026, but a 3.2% core PCE inflation reading set off alarm bells.
Gas prices are now highest in four years as first quarter growth falls short and the national debt exceeds GDP.
Overall GDP, including government, trade, and change in inventories, grew by an annual rate of 2.0% in Q1, adjusted for inflation. Click here to read more.
The U.S. economy grew at a 2 percent pace in the first three months of the year, as higher investment and a rebound in government spending buoyed business activity while consumers showed signs of fatigue amid rising prices.
The U.S. national debt held by the public has surpassed the size of the economy for the first time since World War II, reaching over 100% of GDP in March.
In a sign of potential danger, inflation climbed at its fastest rate in four years in March as fuel costs rose, driven by global oil and gas shortages.