US Economy Expands at Slower Pace in Q2 Amid Elevated Inflation

The US economy expanded at an annualized rate of 1.5% between April and June, according to Commerce Department data released on Thursday.

This growth rate was slower than the 1.8% expected by economists surveyed by Dow Jones, who had anticipated a rebound from the 2.1% expansion in the first quarter.

The personal consumption expenditures price index (PCE), the inflation measure most closely watched by the Federal Reserve, declined 0.1% on a monthly basis in June, its weakest reading since April 2020.

However, annual headline inflation remained at 3.7%, matching market expectations but still significantly above the central bank's 2% objective.