US economy expands 3% in Q1 as consumer spending stays firm

The U.S. economy grew at a 3% annual pace in the first quarter, according to the Commerce Department’s final estimate. The reading shows growth held up despite softer business investment, with household spending doing most of the work.

Consumer demand remained a key support for the expansion, helping offset weaker momentum in parts of the private sector. The report adds to evidence that the economy stayed resilient early in the year even as companies became more cautious.

The final GDP figure confirms the pace of growth was stronger than many forecasters had expected at the start of the quarter. Still, the mix of growth suggests the economy relied heavily on consumers rather than broad-based investment.

Economists will now look to whether spending stays steady in the months ahead, especially if borrowing costs, inflation pressures, or labor market cooling begin to weigh on households.