US economy grew 2% despite Iran war — but Americans’ spending slowed
The US economy grew at a 2% annual rate in the first quarter of 2026, rebounding from a sluggish end to 2025 despite the ongoing conflict involving Iran and its impact on global energy markets. Consumer spending, which makes up 70% of economic activity, slowed to 1.6% amid high gas prices and economic uncertainty. Business investment rose sharply, especially in artificial intelligence, while residential investment continued to decline and imports subtracted significantly from growth.
Opening excerpt (first ~120 words) tap to expand
Business US economy grew 2% despite Iran war — but Americans’ spending slowed By Associated Press Published April 30, 2026, 12:22 p.m. ET The US 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. But the outlook is clouded by the Iran war. The Commerce Department reported Thursday that gross domestic product — the nation’s output of goods and services — rebounded from a lackluster 0.5% expansion the last three months of 2025. The federal government’s spending and investment grew at a 9.3% annual rate in the first quarter, adding more than half a percentage point to growth after lopping off 1.16 percentage points in fourth-quarter 2025.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at New York Post.
Discussion
0 commentsMore from New York Post
