U.S. Economy Grows in Q1 Amid Rising Government Spending

The U.S. economy experienced growth in the first quarter, driven by increased government spending, according to Jin10. However, this growth may be temporary as the ongoing conflict with Iran has led to higher gasoline prices, further straining household budgets. Data released by the U.S. Department of Commerce's Bureau of Economic Analysis on Thursday showed that the preliminary annualized quarter-on-quarter growth rate of the U.S. real GDP was 2.0% in Q1, up from 0.5% in the fourth quarter of 2025. The surge in investment in the artificial intelligence sector and the construction of data centers supporting this technology continued to boost corporate spending on equipment. Nonetheless, consumer spending, a key driver of the economy, has slowed further, with its momentum weakening even before the U.S.-Iran conflict.