US economy grew at 2.1% in first quarter

Former Council of Economic Advisors acting chair Tomas Philipson discusses the price of crude oil. the Middle East conflict on 'The Bottom Line.'

This is a developing story about the final reading of U.S. first-quarter GDP. Please check back for updates.

TheU.S. economygrew at a faster pace than expected in the first quarter, according to the Commerce Department's estimate.

The Bureau of Economic Analysis (BEA) on Thursday released its final reading offirst-quarter GDP, which showed the economy grew at an annualized rate of 2.1% in the three-month period including January, February. March.

The Commerce Department released its final estimate of first-quarter GDP on Thursday.(Brandon Bell/Getty Images)

That figure was higher than the expectations of economists polled by LSEG. who had estimated 1.6% GDP growth in the first quarter. The figure was initially estimated at 2% before it was lowered to 1.6% in the BEA's first revision.

US ECONOMY GREW AT 0.5% IN FOURTH QUARTER

It comes after the U.S. economy grew at a rate of roughly 2.1% in 2025. The second half of last year saw 4.4% annualized growth in the third quarter and 0.5% in the fourth quarter.

The BEA reported that the main categories that contributed to the rise in real GDP in the first quarter were investment. exports, government spending andconsumer spending. Imports increased in the first quarter.

Across industries, the biggest contributors to GDP growth were the information technology sector; the federal government; professional, scientific. technical services; and durable goods manufacturing. The main offsets to GDP were declines in retail trade, wholesale trade, along with finance and insurance.

Much of the investment in the information sector was directed toward information processing equipment and computers amid theartificial intelligence (AI)buildout. Investments in software as well as research and development.

Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech. money news that matters to you.

We've added you to our mailing list.

By clicking subscribe, you agree to the Fox NewsPrivacy PolicyandTerms of Use,. agree to receive content and promotional communications from Fox News. You understand that you can opt-out at any time.