US economy expanded at solid 2.1% pace in January-March, government says, upgrading last estimate

WASHINGTON: The US 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. Thursday's numbers marked an upgrade from of Commerce's previous first-quarter estimate of 1.6% growth.

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.


The U.S. economy - the world's biggest - has continued to chug along despite the Iran energy shock. uncertainty. The American job market has proven especially resilient. Employers added an average 188,000 jobs a month from March through May after adding fewer than 10,000 a month in 2025 amid uncertainty over President Donald Trump's trade and immigration policies.

Thursday's report was the Commerce Department's third and final estimate of first-quarter GDP growth. The first look at second-quarter economic growth is due July 30.