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US economy rebounds to 2% growth as shutdown scars fade and AI boosts investment outlook
International
Published on 30 April 2026
AI helped lift business investment even as consumers cooled
The US economy grew at a modest 2% annual pace in the first quarter of 2026, rebounding from a weak 0.5% expansion following a federal shutdown. Government spending jumped, and business investment rose 8.7%, partly powered by artificial intelligence. But consumer spending slowed to 1.6%, leaving the growth mix mixed going into what may be a volatile period.
- US first-quarter growth accelerates to a 2% annual pace
- Federal shutdown-linked weakness eased from the prior quarter
- Government spending rose sharply while AI supported investment
- Consumer spending cooled to 1.6%, complicating the outlook
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times