WSJ:
AI boost
Massive data-center spending has been fueling economic growth all year. Goldman Sachs recently projected that artificial-intelligence investment in the U.S. will hit a staggering 1.9% of GDP. While much of that money is spent on imported chips, the boom is also creating plenty of construction jobs in the U.S. as developers race to build server farms. The rise in construction spending has helped compensate for a decline in home-building.
Trade impact
Spending on imported goods surged by more than a quarter on an annualized basis, driven in part by semiconductor purchases from abroad. Overall net imports subtracted 3.3 percentage points from GDP growth.
GDP reflects the total of all spending. But since some of that spending is on imported products, rather than things made in the U.S., imports are considered a drag on GDP.
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