An article summarized by Quartz:

The U.S. economy grew at an annualized rate of 2.0% in the first quarter of 2026, rebounding from a sluggish 0.5% pace at the end of 2025. Growth was driven by a broad mix of investment, exports, consumer spending, and government spending, though rising imports slightly offset the gains. The improvement was largely fueled by a recovery in federal spending after the previous quarter was dragged down by a government shutdown, along with stronger exports and business investment.

Consumer spending, which makes up the majority of the economy, increased at a moderate 1.6% pace, slower than the previous quarter, with growth led primarily by services like healthcare. Meanwhile, business investment surged, with equipment spending jumping over 10%, driven in part by heavy investment in artificial intelligence infrastructure and data centers. Gains in technology and intellectual property were partially offset by declines in construction-related sectors.

Despite the solid growth, inflation picked back up, signaling ongoing economic pressure. The Federal Reserve’s preferred inflation gauge rose to 4.5% for the quarter, with core inflation (excluding food and energy) reaching 4.3%. Overall demand in the economy showed resilience, but the combination of rising inflation and slightly below-expected growth suggests a more complicated economic outlook ahead

For the article: https://qz.com/us-gdp-growth-first-quarter-2026-043026