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.

US GDP rose 2% in the first three months of 2026, new data showed Thursday, driven by AI investment. The expansion fell short of Wall Street’s expectations as consumers pulled back slightly on spending — a key inflation gauge rose to its highest point in nearly three years in March.

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.

Fresh data showed the economy expanded at a 2% annualized pace in the first quarter while core inflation rose 3.2% year-over-year in March.

Business investment contributed more to first quarter GDP than consumer spending as AI increasingly drives the US economy.

Gross domestic product expanded at a 2 percent annual rate in the first three months of the year, a period including first weeks of conflict in the Middle East.

GDP rose at an annual rate of 2% from January to March, according to data out today from the Bureau of Economic Analysis. A big reason why: investment in AI.

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.