Goldman sees AI spending hitting $1.4 trillion by end-2027, almost 4% of the US economy

In today's economic growth news, Solid capex does not mean equally solid US GDP growth, and the gap reveals up instead in a wider trade deficit and in demand for Asian supply chains, according to investingLive. Goldman anticipates US business investment to grow around 8% in 2027, close to double the consensus forecast of roughly 4%.

Key points

• According to Goldman Sachs, Artificial intelligence will stay the main driver of US business investment growth in 2027.
• That compares with its forecast of upwards of $900 billion by the end of 2026.
• It estimates that AI-related investment alone will add upwards of 5 percentage points to capex growth next year once semiconductors are included.
• Cisco raised its full-year prospects on solid AI networking demand from hyperscalers.
• The AI boom is enormous for capex and for the firms supplying it.

Economic growth: the details

As Fed hike expectations push borrowing costs higher, Funding costs stay the main pressure point. According to Goldman Sachs, Artificial intelligence will stay the main driver of US business investment growth in 2027. That compares with its forecast of upwards of $900 billion by the end of 2026, Reuters reported on Wednesday.

It estimates that AI-related investment alone will add upwards of 5 percentage points to capex growth next year once semiconductors are included. The more striking detail is how little of that spending reveals up in US output.

The AI boom is enormous for capex and for the firms supplying it, but its direct support to the US economy is much smaller than the spending total suggests in other words. Cisco raised its full-year prospects on solid AI networking demand from hyperscalers, Applied Materials guided above forecasts on chip equipment orders, and Cerebras reported a backlog of roughly $26 billion.

Advancing borrowing costs and tighter investor scrutiny could slow AI capital spending, particularly as firms rely more on debt to pay for the build-out.

Why traders are watching economic growth

Growth data shape expectations for corporate profits, employment and central-bank policy. Signs of a slowdown usually increase the chance of rate cuts, while strong data can keep rates higher for longer.

Economic momentum feeds into currencies, bond yields and stocks, making growth releases important for traders across asset classes.

Market reaction and data

On the currency side, the latest ECB daily reference rates (2026-11-12) show EUR/USD 1.1081, GBP/USD 1.3256, AUD/USD 0.6821, NZD/USD 0.5556, USD/JPY 159.7, USD/CHF 0.8331, USD/CAD 1.4249, USD/CNY 6.6683. These are reference fixes, not live quotes.

What to watch next for economic growth

Next in focus are business surveys, consumer spending figures and central-bank comments on the growth outlook.

Key scheduled releases on the economic calendar:

• USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
• USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%

Follow every update in our Top 10 Forex News Today, read Anthropic IPO targets roughly $1 trillion valuation, half the $2 trillion once whispered or see all of today's top market news.

FAQ

What is the latest economic growth news?

Solid capex does not mean equally solid US GDP growth, and the gap reveals up instead in a wider trade deficit and in demand for Asian supply chains.

How does GDP data affect currencies?

Stronger growth usually supports a currency by raising interest-rate expectations, while weak growth can push the currency lower.

Where does this information come from?

This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.