More of the Same

The US economy continues to grow at a steady, modest pace, with real GDP tracking near 2% and the first half of the year looking broadly consistent.

Much of the momentum is coming from AI-related investment, especially data centers, computer equipment, and hyperscaler spending, which is supporting growth well beyond technology. That strength is also spilling into areas like power generation and water infrastructure.

At the same time, the broader economy is not booming. Consumer spending looks mixed, business investment outside AI remains uneven, housing is still weak, and trade may weigh on growth if imports stay elevated.

For investors and advisors, this points to an economy that still has support from innovation-led capital spending but remains vulnerable to softer demand in other sectors. The opportunity lies in areas tied to digital buildout and infrastructure needs, while the main risk is that concentrated growth leaves more traditional parts of the economy behind.