Saad Ullah
⬤ Fresh data shows AI-related spending dominated American economic growth during the first half of 2025. Charts tracking business fixed investment reveal a massive spike in information processing equipment and software purchases. Meanwhile, GDP figures excluding this tech category show growth hovering near zero, with over 90% of total economic expansion coming directly from AI infrastructure.
⬤ The numbers reveal a growing gap between AI-powered investment and everything else. Technology spending surged while other sectors lost steam. Companies slowed their hiring, unemployment crept upward, and consumer confidence dropped as lower-income families cut back on spending. Construction activity also weakened, signaling broader cooling beyond the AI sector.
⬤ Economists are calling it a two-track economy—AI infrastructure drives almost all visible growth while traditional industries stay stuck in neutral. The heavy concentration in information processing equipment and software shows just how narrow the expansion has become. One analyst noted the AI boom is creating excitement but hiding the drift happening across the rest of the economy.
⬤ This matters because it raises real questions about what happens if AI spending slows down. When one category delivers most of the gains, overall stability depends on whether AI investment stays strong and whether those benefits eventually reach other sectors. Right now, the AI sector keeps surging, but warning signs are piling up across the broader economy.
Saad Ullah
