WASHINGTON — Business investment in the United States rose by more than 10% in the first quarter of 2026, driven by strong spending on equipment and intellectual property, according to a Treasury Department economic assessment released as policymakers monitor growth, inflation and business activity.
The Treasury Department said in a report prepared for the Treasury Borrowing Advisory Committee that business investment increased by more than 10% during the January-to-March period, supported by purchases of new equipment and software-related assets. The department said the gains contributed significantly to overall economic growth in the first quarter.
According to Treasury, the increase reflected a sharp rise in investment in information-processing equipment and intellectual property products, including software. The department said investment in equipment grew at an annualized rate of more than 17%, while investment in intellectual property products increased at a rate of about 13%. Treasury also reported strong growth in data-center construction linked to artificial intelligence development.
“Business investment rose by over 10% in the first quarter of 2026, driven by investments in new equipment and intellectual property,” Treasury said in the report released in May.
The findings were broadly consistent with estimates from the U.S. Bureau of Economic Analysis, which reported that investment was one of the main contributors to economic expansion during the first quarter. The agency said real gross domestic product grew at an annualized rate of 1.6% in its second estimate, with business investment, exports and consumer spending contributing to growth.
Treasury said the increase in business spending helped offset weaker areas of the economy, including continued declines in some categories of residential investment. The department also cited solid household consumption and labor-market conditions as factors supporting economic activity.
Administration officials have pointed to investment growth as evidence that businesses are expanding capacity and increasing spending on technology and productivity-enhancing projects. Treasury said investments in artificial intelligence infrastructure, software and advanced computing equipment were among the strongest-performing categories during the quarter.
Economists and analysts have noted that business investment has become an increasingly important driver of growth as consumer spending moderates. Government data showed that investment made one of the largest contributions to first-quarter GDP growth after a weaker end to 2025.
The Treasury report also highlighted continued labor-market resilience, stating that employment growth accelerated during the first quarter while wage gains continued to outpace inflation. At the same time, officials acknowledged that energy-price increases associated with the conflict involving Iran had contributed to higher inflation readings.
As of Friday, the Treasury Department said available data on investment, sales and earnings suggested continued economic expansion, though officials noted that future performance would depend on evolving economic and geopolitical conditions. Details regarding second-quarter investment trends remain limited pending additional government data releases.
