Economic growth picked up in the first quarter as businesses invested heavily in AI, rebounding from a fourth quarter dented by a government shutdown.

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.

U.S. economic growth rebounded in the first quarter of 2026, boosted in part by a recovery following the previous quarter’s government shutdown.

The AI boom propped up U.S. economic growth in the first quarter, but inflation due to the Iran war is casting a cloud.

The United States economy grew at a solid pace over the first three months of 2026, rebounding from sluggish performance at the end of last year, a government report on Thursday showed. The economy grew at an annualized rate of 2% in the first quarter,

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.

Artificial intelligence spending drove an upswing in business investment, pointing to an economy that has held firm following the Iran war.

Soaring prices for things such as food and drinks have pushed many young Americans out the dating pool altogether.

The U.S. economy rebounded to a solid 2% annual growth rate in the first quarter after a tepid 0.5% growth rate in the prior quarter, as the artificial-intelligence spending boom appears to be gathering steam.