The U.S. economy grew at an annualized pace of 3% in the first quarter, according to the latest Reuters report, exceeding economists’ expectations. The reading points to continued resilience in consumer demand despite persistent uncertainty around inflation, interest rates and the broader outlook.

Consumer spending remained a key support for growth, helping offset softer activity in other parts of the economy. The stronger-than-expected figure suggests households kept spending through the period, even as borrowing costs stayed elevated.

The GDP report is one of the clearest snapshots of overall economic momentum and often shapes expectations for the Federal Reserve’s next moves. Analysts will now watch whether the pace can hold in the months ahead or if tighter financial conditions begin to slow activity.