US Economy Shows Surprising Strength Despite Iran War

The US economy appears to be getting stronger even as the Iran war pushes oil prices higher, according to new government data.

In March, American businesses increased their spending on equipment and technology by 3.3% (this means for every $100 they spent before, they're now spending $103.30). This follows a 1.6% increase in February, marking the strongest growth in business spending since 2017.

What's driving this growth? • Companies are investing heavily in artificial intelligence (AI) technology • New tax breaks from the Trump administration are encouraging businesses to spend more • Over the past year, business investment orders jumped 9.5% - the fastest growth in eight years

The data also showed strength in: • Home building (construction of new houses) • Business inventories (products companies have in stock to sell)

Despite concerns that the Iran war would hurt the economy through higher oil prices (making gas and transportation more expensive), these numbers suggest American businesses remain confident. When companies invest in new equipment and technology, it typically means they expect to grow and need better tools to serve more customers.

The bottom line: While wars often hurt economies, the US appears to be weathering this storm well so far, with businesses continuing to spend and expand.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/did-the-economy-actually-get-stronger-during-the-iran-war-heres-what-the-numbers-tell-us-a27cfea7?mod=mw_rss_topstories