FX.co ★ US Economy Likely Rebounded in Q1

The US economy likely expanded at an annualized pace of 2.3% in Q1 2026, a strong rebound from the modest 0.5% growth recorded in Q4 2025. This recovery was partly driven by a snapback following the prior quarter’s government shutdown. Business investment in equipment appears to have been a key support for growth, while consumer spending showed signs of softening. Net trade likely weighed on overall activity as imports surged, although a portion of these inflows may have been channeled into inventories.