Commerce Department upgrades US Q1 GDP growth to 2.1% as business investment surges but consumer spending cools
By
Paul Wiseman
Summary
The U.S. economy grew at a 2.1% annual rate in Q1 2025, according to the Commerce Department's final estimate, rebounding from a 0.5% growth rate in Q4 2025 that was impacted by a 43-day federal government shutdown. This was an upgrade from the previous estimate of 1.6%. Business investment surged, likely driven by AI investment, but consumer spending fell sharply from both the previous quarter and earlier estimates.
Source
bskyCommerce Department upgrades US Q1 GDP growth to 2.1% as business investment surges but consumer spending coolsapnews.comKey quotes
· 4 pulledThe U.S. economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported Thursday in its final estimate of first-quarter growth.
The growth in gross domestic product — the nation's output of goods and services — marked a rebound from a sluggish 0.5% in the last three months of 2025 when a 43-day federal government shutdown weighed on the economy.
Business investment surged, probably reflecting an investment boom in artificial intelligence.
But consumer spending fell sharply from fourth-quarter 2025 and from Commerce's previous estimate.
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