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News Wire / economy

AI Growth Masks US Economic Issues

WAMU 88.5 DC Washington 40d39d Impact 5

Spending on data centers and computers to run artificial intelligence applications is currently driving economic growth in the U.S. Charlie Wise, a senior vice president at credit reporting firm TransUnion, noted that the average credit card user is carrying a balance of approximately $6,500. High earners appear able to maintain spending despite gas prices potentially reaching four to six dollars a gallon. Conversely, lower-income consumers are expected to make trade-offs due to these costs. Michael Pierce of Oxford Economics stated that business investment in AI is boosting the stock market. This strong stock market performance is subsequently supporting the top contributor to the US economy. The growth is driven by both direct business spending and broader market effects.

Spending on data centers and computers to run artificial intelligence applications is currently driving economic growth in the U.S. Charlie Wise, a senior vice president at credit reporting firm TransUnion, noted that the average credit card user is carrying a balance of approximately $6,500. High earners appear able to maintain spending despite gas prices potentially reaching four to six dollars a gallon. Conversely, lower-income consumers are expected to make trade-offs due to these costs. Michael Pierce of Oxford Economics stated that business investment in AI is boosting the stock market. This strong stock market performance is subsequently supporting the top contributor to the US economy. The growth is driven by both direct business spending and broader market effects. Global accounting firm RSM reported that AI has driven US GDP growth, though the annual growth rate of 2% fell short of the 2.2% estimate. The firm noted that US growth may weaken in coming quarters due to the war in Iran. Artificial intelligence growth has acted as a primary driver for the economy in recent years. Some analysts suggest that AI growth has masked other economic challenges within the United States. Without the expansion of the AI sector, the American economy could have faced a recession under the Trump administration.

Topics

artificial intelligence economy data centers

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Sources · 7 independent

WAMU 88.5 DC

“this artificial intelligence frenzy that we've seen in the U.S. and globally really is really what's driving growth right now. The spending to build out all these data centers and fill them with computers to run these artificial intelligence applications is really driving the bus with the economy right now.”

WAMU 88.5 DC

“this artificial intelligence frenzy that we've seen in the U.S. and globally really is really what's driving growth right now. The spending to build out all these data centers”

KQED FM

“intelligence applications is really driving the bus with the economy right now. Business outlays on equipment and structures increased 10.4% in the first quarter.”

WAMU 88.5 DC

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year, which is fine, not great, but not terrible.”

KQED FM

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year, which is fine, not great, but not terrible. Alan Things growth could slow to half that pace, just 1% in the current quarter.”

WAMU 88.5 DC

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year. growth could slow to half that pace, just 1%.”

WAMU 88.5 DC

“growth could slow to half that pace, just 1%.”

KQED FM

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year. Growth could slow to half that pace, just 1% in the current quarter.”

WAMU 88.5 DC

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year, which is fine, not great, but not terrible. growth could slow to half that pace, just 1%.”

KQED FM

“Today the Commerce Department said the economy grew at an annual rate of 2% in the first three months of the year. Alan Things growth could slow to half that pace, just 1% in the current quarter.”

WAMU 88.5 DC

“growth could slow to half that pace, just 1%. ... Charlie Wise is a senior vice president at the credit reporting firm TransUnion. He says the average credit card user is carrying a balance of about $6,500”

WAMU 88.5 DC

“Isshwar Prasad of Cornell, Michael Pierce of Oxford Economics and Shannon Grine of Wells Fargo all in agreement that AI is pretty much driving economic growth right now.”

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