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Economy

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

Sarah Williams
Banking & Finance Desk
ยทPublished Apr 22, 2026, 4:57 PM UTCยท Updated Apr 25, 2026, 6:03 PM UTC0
US GDP Grew 2.8% in Q1 as Consumer Spending Beats Expectations by Wide Margin

TLDR

  • โ—US GDP grew 2.8% in Q1, beating 2.3% consensus estimate significantly.
  • โ—Consumer spending surged 3.1%, strongest pace in a year.
  • โ—Strong 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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Banking & Financial Services Desk

Sarah Williams

Sarah covers global banking โ€” earnings, regulatory capital, M&A, and the systemic risk picture across US, UK and Asian banks. Former buy-side credit research before joining the desk.

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