US GDP Grew 2.8% in Q1 as Consumer Spending Beats Expectations by Wide Margin
The US economy expanded at an annualized 2.8% in Q1 2025, topping the 2.3% consensus. Consumer spending rose 3.1%, the strongest gain in a year. Business investment jumped 4.4% led by equipment spendi
TLDR
- โUS GDP grew 2.8% in Q1, beating 2.3% consensus estimate significantly.
- โConsumer spending surged 3.1%, strongest pace in a year.
- โStrong data reduces Fed pressure to cut interest rates quickly.
The US economy expanded at an annualized 2.8% in Q1 2025, topping the 2.3% consensus. Consumer spending rose 3.1%, the strongest gain in a year. Business investment jumped 4.4% led by equipment spending. The strong GDP print reduces pressure on the Fed to cut rates quickly.
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