U.S. economy grew 2% from January-to March, recovering from federal shutdown
The U.S. economy grew at a 2% annual rate from January to March 2026, rebounding from the previous quarter's 0.5% expansion as it recovered from a 43-day federal government shutdown. Consumer spending slowed slightly while business investment rose, supported by advancements in artificial intelligence. However, economic uncertainty has increased due to Iran's blockade of the Strait of Hormuz, which has driven up energy prices and inflation, complicating the outlook for future growth.
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Open this photo in gallery:Amazon employees load packages on carts at a delivery station in South Gate, Calif.Richard Vogel/The Associated PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe U.S. economy accelerated at the start of 2026, expanding at a modest 2-per-cent 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 lacklustre 0.5-per-cent expansion the last three months of 2025.
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