The U.S. economy expanded at a 3% annualized pace in the first quarter, according to government data released Friday. The increase was driven largely by solid consumer spending, which continued to support growth across the broader economy.

The latest figures point to resilient demand from households, even as businesses and policymakers watch for signs of slower activity later in the year. Consumer spending remains a key engine of U.S. growth, and its strength helped offset weakness in other parts of the economy.

Economists will be watching whether that momentum continues in the coming months, especially as interest rates, inflation pressures and trade conditions influence household and business decisions. The first-quarter reading offers a snapshot of an economy that remained on firmer ground than many analysts had expected.

The data also adds context to the broader debate over the pace of U.S. growth and whether the economy can sustain expansion without losing momentum. Friday’s report suggests consumers still have enough spending power to keep growth moving, at least for now.