Source : Perth Now news
After recovering from the last 43-day provincial government shutdown in the northern autumn, the US economy grew at a reasonable 2 % rate from January through March.
However, the Iran War has a negative impact on the view.
The government’s output of goods and services, or gross domestic product, increased by 0.5 % over the previous three months of 2025, according to a report released by the Commerce Department on Thursday.
Spending and investment by the federal government increased by more than half a percentage point in the first quarter after falling by 1.16 percentage points in the fourth quarter of 2025, increasing that price by 9.3 % annually in the first quarter.
Consumer spending growth, which accounts for 70 % of US economic activity, decreased from 1.9 % to 1.9 % in the first quarter to 1.9 % at the end of 2025.
Food and clothing paying decreased significantly.
Spending on service decreased.
However, business expense increased at an 8.7 % rate, likely driven by spending in artificial intelligence.
The economy is still impacted by a poor housing market.
Private purchase decreased by 8 % annually, marking the second consecutive quarterly decline and the largest since 2022.
Non-residential investment increased 10.4 %, the largest increase in nearly three years, excluding housing.
More than 2.6 percentage points fell from first-quarter development due to an increase in exports, which increased from January to March at an annual charge of 21.4 %.
