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.

Fresh data showed the economy expanded at a 2% annualized pace in the first quarter while core inflation rose 3.2% year-over-year in March.

First quarter GDP grew at 2%, slightly below the expected 2.3%, as equipment investment in AI and computers along with consumer spending led growth.

Data: Bureau of Economic Analysis; Chart: Courtenay Brown/Axios The U.S. economy expanded at a 2% annualized pace in the first quarter of 2026, the Commerce Department said Thursday. Why it matters: The economy was on relatively solid footing as the Iran war began,

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

U.S. national debt held by the public has surpassed the size of the economy for the first time since World War II, reaching over 100% of GDP in March.

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.

The U.S. economy grew at a 2 percent pace in the first three months of the year, new government data shows.