https://www.foxbusiness.com/economy/us-e...2026-final
https://www.bea.gov/news/2026/gdp-third-...income-2nd
Truly good news, and I am a Princeton-educated macroeconomist. (retired since 2002)
GDP growth estimate raised for Q1 to 2.5%, and for Q2 to 2.2%, reflecting new data and updates to annual benchmarks.
Business investment and consumer spending are outperforming expectations. Business investment revised up to 9% thanks to higher IP and AI spending. Data centers are driving it, and information processing equipment helped boost consumer spending.
Spectator amusement admission boosted consumer spending in Q2, thanks to the World Cup. Consumers' wallets aren't bothered by higher gas prices. Consumer spending is up more than personal incomes, thanks to the stock market. Folks with $1 million+ in 401(k)s are at record highs.
Corporate profits are up 21% over a year, thanks to the AI boom (and the new tax bill). Stock price increases are broad.
New exports shed 1.1 points from GDP, since AI companies imported chips and equipment for data centers, but that's good for domestic investment and growth. Imports aren't a bad thing.
The economy is better off than it was in years, and it's real growth. No more government welfare to juice the numbers. The tax bill ended green subsidies and reformed food stamps to get enrollment back to pre-pandemic. Student loan debtors are paying again. So much for these things killing the economy. Tax revenue up 3%, income tax revenue up 8%. Another tax cut paid for by growth.
Q3 GDP will be strong too.
https://www.bea.gov/news/2026/gdp-third-...income-2nd
Truly good news, and I am a Princeton-educated macroeconomist. (retired since 2002)
GDP growth estimate raised for Q1 to 2.5%, and for Q2 to 2.2%, reflecting new data and updates to annual benchmarks.
Business investment and consumer spending are outperforming expectations. Business investment revised up to 9% thanks to higher IP and AI spending. Data centers are driving it, and information processing equipment helped boost consumer spending.
Spectator amusement admission boosted consumer spending in Q2, thanks to the World Cup. Consumers' wallets aren't bothered by higher gas prices. Consumer spending is up more than personal incomes, thanks to the stock market. Folks with $1 million+ in 401(k)s are at record highs.
Corporate profits are up 21% over a year, thanks to the AI boom (and the new tax bill). Stock price increases are broad.
New exports shed 1.1 points from GDP, since AI companies imported chips and equipment for data centers, but that's good for domestic investment and growth. Imports aren't a bad thing.
The economy is better off than it was in years, and it's real growth. No more government welfare to juice the numbers. The tax bill ended green subsidies and reformed food stamps to get enrollment back to pre-pandemic. Student loan debtors are paying again. So much for these things killing the economy. Tax revenue up 3%, income tax revenue up 8%. Another tax cut paid for by growth.
Q3 GDP will be strong too.
