US economy grows 1.5% in second quarter, missing forecasts
30.07.2026 - 16:58 | Last Updated:
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The US economy expanded at an annual rate of 1.5% in the second quarter of 2026, slowing from the previous quarter and falling short of market expectations as weaker government spending, investment and exports weighed on growth.
The US economy expanded at an annualized rate of 1.5% in the second quarter of 2026, falling short of market expectations, according to an advance estimate released Thursday.
Economists had forecast gross domestic product (GDP) growth of 2.1% for the April-June period. The Bureau of Economic Analysis said the economy slowed from a revised 2.1% expansion in the first quarter.
The second-quarter increase reflected gains in consumer spending, investment and exports, which were partly offset by a decline in government spending. Imports, which are subtracted from GDP calculations, also increased.
The slowdown from the previous quarter was driven by a downturn in government spending and weaker growth in investment and exports, while consumer spending accelerated. Imports rose at a faster pace than in the first quarter.
Real final sales to private domestic purchasers, a measure of underlying private-sector demand, increased 3.9%, accelerating from 1.7% in the first quarter.
Inflationary pressures strengthened during the quarter, with the gross domestic purchases price index rising 5.7%, up from 3.6% in the previous three-month period.
The personal consumption expenditures (PCE) price index increased 5.1%, compared with 4.6% in the first quarter. Core PCE inflation, which excludes volatile food and energy prices, eased to 3.4% from 4.4%. Current-dollar GDP increased at an annualized rate of 7.9% during the quarter.
