US Growth Holds Near 2% as AI Investment Lifts GDP
Updated
Updated · Reuters · Oct 26
US Growth Holds Near 2% as AI Investment Lifts GDP
3 articles · Updated · Reuters · Oct 26
Summary
Economists still peg underlying U.S. trend growth at about 2%, even as AI-driven spending on data centers and computing capacity gives headline GDP a near-term lift.
Several trillion dollars of planned AI-related capital spending has fueled a boom in business investment, helped by corporate tax incentives, and has become a key prop for output that otherwise looks sluggish.
Recent productivity gains have strengthened the bullish case, but officials and economists say the data are volatile and too early to prove AI has raised the economy’s long-run speed limit.
Aging demographics, slower population growth and weaker immigration continue to cap labor-force expansion, while imports tied to data-center buildouts and mixed reshoring evidence undercut claims of a structural growth breakout.