United States

Měiguó

美国

first quarter

yī jìdù

一季度

GDP (gross domestic product)

GDP

GDP

to grow / growth

zēngzhǎng

增长

2 percent

bǎifēnzhī èr

2%

，

inflation

tōngzhàng

通胀

however / but

què

却

sharply / steeply

jíjù

急剧

to climb / to surge

pānshēng

攀升

to / up to

zhì

至

4.5 percent

bǎifēnzhī sì diǎn wǔ

4.5%

。

New Words

News in English

US Economy Grows 2 Percent in Q1 2026 But Inflation Surges to 4.5 Percent

US Commerce Department data showed real GDP grew at a 2 percent annualized rate in Q1 2026, but the inflation indicator for the same period surged to 4.5 percent.

The US Department of Commerce released data on April 30th showing that the first quarter 2026 actual GDP annualized growth rate is 2%. This represents a significant rebound from the previous quarter's 0.5%, though it is still slightly below analyst expectations of 2.2%. Business equipment and software investment reached an annualized growth rate of 10.4%, marking the highest level since mid-2023, primarily driven by AI-related investments. However, inflation pressure has risen significantly. The Federal Reserve's preferred inflation indicator PCE surged sharply from 2.9% in the last quarter of last year to 4.5%. Economists point out that tariffs passed on to consumers, Middle East conflicts, rising energy prices, and supply-side disruptions are the primary drivers accelerating inflation. Consumer spending growth slowed from 1.9% last quarter to 1.6%, reflecting the pressure of high inflation on household consumption.

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